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.
-What are the equivalent units for conversion costs for the month in the first processing department?
A)8,400
B)7,700
C)7,000
D)700

Question

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. 
-What are the equivalent units for conversion costs for the month in the first processing department?
A)8,400 
B)7,700 
C)7,000 
D)700

Quizplus · Accepted Answer

Conversion costs include direct labor and factory overhead. In the first processing department, the direct labor cost is $4,600 (11,000 units x $0.40 per unit) and the factory overhead cost is $3,100 (11,000 units x $0.28 per unit). Therefore, the total conversion costs for the month in the first processing department are $7,700 (=$4,600 + $3,100). The correct answer is B.

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