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

question 23

Multiple Choice

Duhamel Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,800 units were started and 7,000 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 55% complete with respect to materials and 50% 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.
-How many units are in ending work in process inventory in the first processing department at the end of the month?

• A)1,400
• B)7,200
• C)900
• D)800

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Definitions:

Work In Process Inventory

Materials and products that are in the process of being manufactured but are not yet complete.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for manufacturing processes.

Cost Of Goods Manufactured

The total cost incurred to produce products and prepare them for sale, including raw materials, labor, and overhead, during a specific accounting period.

Cost Of Goods Manufactured

The total cost incurred to produce goods that are completed and ready for sale during a specific period.