Question

# Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added...

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.

Problem 16-2A Part 1

Determine the equivalent units of production with respect to direct materials and conversion.

 Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion EUP-Conversion Total units

Equivalent Units of Production(EUP) - Weighted Average Methid

 Units % Materials EUP Materials % Conversion EUP Conversion Units completed and transferred out 755000 100% 755000 100% 755000 Ending work in progress(Units) 199000 100% 199000 50% 99500 Total Units 954000 854500

Explanation:

 Direct materials conversion Equivalent unit of production Units completed and transferred out 755000 755000 Units of work in ending process Direct materials(199000×100%) 199000 Conversion(199000×50%) 99500 Equivalent Units of Production 954000 854500