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

question 130

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.
-What are the equivalent units for conversion costs for the month in the first processing department?

• A) 7,200
• B) 6,925
• C) 6,100
• D) 825

---

Definitions:

Long Period

A term referring to an extended duration of time, often relating to financial or strategic planning horizons.

Comparability

An accounting principle that allows stakeholders to compare financial information across different time periods effectively.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting that is adopted by most countries.

ASPE

Accounting Standards for Private Enterprises, which are the accounting standards used by private companies in Canada.