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 first process. During November, the first process transferred 810,000 units of product to the second process. Additional information for the first process follows.

At the end of November, work in process inventory consists of 198,000 units that are 60% complete with respect to conversion. Beginning work in process inventory had $458,640 of direct materials and $185,760 of conversion cost. The direct material cost added in November is $3,069,360, and the conversion cost added is $3,529,440. Beginning work in process consisted of 70,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 70,000 were from beginning work in process and 740,000 units were started and completed during the period.

Cost per equivalent unit of production		Materials		Conversion
Costs of beginning work in process		$458,640		$185,760
Costs incurred this period		3,069,360		3,529,440
Total costs	Costs	$3,528,000	Costs	$3,715,200
÷ Equivalent units of production	EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)

Answer 1