Question

Domingo 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:

	Cost				Percent Complete
Materials costs	$	5,700				50%
Conversion costs	$	1,900				20%

A total of 7,000 units were started and 6,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	158,900
Conversion costs	$	120,600

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Multiple Choice

• $20.90

• $21.67

• $22.23

• $21.42

Answer 1