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 810,000 units of product to finished goods. At the end of November, the work in process inventory consists of 197,000 units that are 90% complete with respect to conversion. Beginning inventory had \$392,730 of direct materials and \$123,413 of conversion cost. The direct material cost added in November is \$2,628,270, and the conversion cost added is \$2,344,837. Beginning work in process consisted of 61,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 61,000 were from beginning work in process and 749,000 units were started and completed during the period.

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

 Cost per equivalent unit of production Materials Conversion Costs of Beginning Work in Progress \$ \$ Costs incurred this period \$ \$ Total costs Costs \$ Costs \$ Equivalent units of production EUP EUP Cost per Equivalent unit of production (2 decimal places)

 2 Cost per equivalent unit of production Materials Conversion Cost of beginning work in process 392730 123413 Costs incurred this period 2628270 2344837 Total costs Costs 3021000 Costs 2468250 ÷ Equivalent units of production EUP 1007000 EUP 987300 Cost per equivalent unit of production 3.00 2.50 Workings for equivalent units: Equivalent units of production (EUP)- weighted average method Units %Materials EUP-Materials %Conversion EUP-Conversion Units completed and transferred out 810000 100% 810000 100% 810000 Ending work in process 197000 100% 197000 90% 177300 Total units 1007000 1007000 987300

#### Earn Coins

Coins can be redeemed for fabulous gifts.