part 1

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,000 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	7,100				50%
Conversion costs	$	3,300				20%

A total of 8,400 units were started and 7,700 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	$	160,300
Conversion costs	$	122,000

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:

part 2

Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 71 canoes and transferred them to the Waterproofing Department.

What are the Fabrication Department's equivalent units of production related to materials for July?

part 3

Macy Corporation's relevant range of activity is 4,500 units to 10,500 units. When it produces and sells 7,500 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	4.90
Direct labor	$	3.35
Variable manufacturing overhead	$	1.35
Fixed manufacturing overhead	$	3.80
Fixed selling expense	$	1.30
Fixed administrative expense	$	0.85
Sales commissions	$	1.25
Variable administrative expense	$	0.75

If the selling price is $26.00 per unit, the contribution margin per unit sold is closest to:

part 4

In July, one of the processing departments at Junkin Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $22,000. During the month, $196,000 of costs were added to production and the cost of units transferred out from the department was $194,000.

Required:

Construct a cost reconciliation report for the department for the month of July.

Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the month
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Cost of units transferred out
Total cost accounted for