Question

Required information Problem 20-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [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 process. During November, the company transferred 735,000 units of product to finished goods. At the end of November, the work in process inventory consists of 182,000 units that are 60% complete with respect to conversion. Beginning inventory had $536,445 of direct materials and $126,630 of conversion cost. The direct material cost added in November is $3,590,055, and the conversion cost added is $2,405,970. Beginning work in process consisted of 63,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 63,000 were from beginning work in process and 672,000 units were started and completed during the period. Problem 20-2A Part 1 Required: 1. Determine the equivalent units of production with respect to direct materials and conversion. Equivalent Units of Production (EUP)- Weighted Average Method EUP- Materials EUP- Conversion Units Materials Conversion Total units

There are 3 parts to this question. All linked to the same question.

Answer 1

Answer

• Requirement 1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	735,000	100%	735,000	100%	735,000
Units of ENDING WIP	182,000	100%	182,000	60%	109,200
Equivalent Units of Production			917,000		844,200

• Requirement 2

COST per EUP			Material		Conversion
Cost of Beginning WIP			$        536,445.00		$                                126,630.00
Cost incurred during the period			$    3,590,055.00		$                            2,405,970.00
Total Costs		Costs	$    4,126,500.00	Costs	$                            2,532,600.00
Equivalent units of production		EUP	917,000	EUP	844,200
Cost per EUP			$              4.50000		$                                      3.00000

• Requirement 3

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	735,000	$                      4.50	$    3,307,500.00
- Conversion	735,000	$                      3.00	$    2,205,000.00
Total Cost transferred Out				$        5,512,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	182,000	$                      4.50	$        819,000.00
- Conversion	109,200	$                      3.00	$        327,600.00
Total cost of ending WIP				$        1,146,600.00
Total costs accounted for					$                            6,659,100.00