Question

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 755,000 units of product to finished goods. At the end of November, the work in process inventory consists of 199,000 units that are 50% complete with respect to conversion. Beginning inventory had $558,090 of direct materials and $128,175 of conversion cost. The direct material cost added in November is $3,734,910, and the conversion cost added is $2,435,325. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 688,000 units were started and completed during the period.

Compute both the direct material cost and the conversion cost per equivalent unit.

Cost per equivalent unit of production		Materials		Conversion
Total costs	Costs		Costs
÷ Equivalent units of production	EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)

Answer 1