Question

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 805,000 units of product to finished goods. At the end of November, the work in process inventory consists of 205,000 units that are 60% complete with respect to conversion. Beginning inventory had $525,200 of direct materials and $139,200 of conversion cost. The direct material cost added in November is $3,514,800, and the conversion cost added is $2,644,800. Beginning work in process consisted of 65,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 65,000 were from beginning work in process and 740,000 units were started and completed during the period.

Answer 1

1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	805000	100%	805000	100%	805000
Ending work in process	205000	100%	205000	60%	123000
Total units	1010000		1010000		928000
2
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			525200		139200
Costs incurred this period			3514800		2644800
Total costs		Costs	4040000	Costs	2784000
÷ Equivalent units of production		EUP	1010000	EUP	928000
Cost per equivalent unit of production			4.00		3.00
3
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	805000	4.00	3220000
Conversion	805000	3.00	2415000
Total cost transferred out				5635000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	205000	4.00	820000
Conversion	123000	3.00	369000
Total Cost of ending work in Process				1189000
Total cost accounted for				6824000