Domingo Corporation Uses the Weighted-Average Method in Its Process Costing

question 113

Multiple Choice

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:
A total of 6,800 units were started and 6,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for materials for the month in the first processing department is closest to:

• A) $22.04
• B) $22.81
• C) $23.34
• D) $22.56

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Definitions:

Budget Report

A financial document that compares planned financial outcomes with the actual figures, helping in managing resources and achieving financial objectives.

Planned Objectives

The specific goals set by a business or organization to guide its operations and strategic planning.

Budget Difference

The variance between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.

Static Budget

A budget that remains unchanged over a period of time, regardless of changes in factors like sales volume or revenue.