Question

Required information (The following information applies to the questions displayed below] 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 800,000 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 192,000 units that are 80% complete with respect to conversion. Beginning work in process inventory had $193,440 of direct materials and $119,200 of conversion cost. The direct material cost added in November is $1,294,560, and the conversion cost added is $2.264,800. Beginning work in process consisted of 77,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 77,000 were from beginning work in process and 723,000 units were started and completed during the period. 3. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.) Total cost EUP Cost per EUP Cost of units transferred out: Direct materials Conversion Total costs transferred out Next> nf 17 16

Answer 1

	Physical units	Direct mat.	Conversion cost	Total
Opening WIP	77000	77000	77000
Started and Completed	723000	723000	723000
Transferred out	800000	800000	800000
Closing WIP	192000	192000	153600
Equivalent units		992000	953600
Total Costs:
Begin WIP		193440	119200
Incurred during November		1294560	2264800
Total costs to account for		1488000	2384000	3872000
Cost per Equivalent unit		1.5	2.5
Cost of Units Transferred out:
	units	Cost per Eq units	Total Costs
Direct Materials	800000	1.5	1200000
Conversion Costs	800000	2.5	2000000
Total costs transferred out			3200000
Cost of Units under Ending WIP:
	units	Cost per Eq units	Total Costs
Direct Materials	192000	1.5	288000
Conversion Costs	153600	2.5	384000
Total costs of Ending WIP			672000
Total Costs accounted for			3872000