Question

Need help with the following accounting problem.

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 740,000 units of product to finished goods. At the end of November, the work in process inventory consists of 189,000 units that are 60% complete with respect to conversion. Beginning inventory had $301,925 of direct materials and $192,015 of conversion cost. The direct material cost added in November is $2,020,575, and the conversion cost added is $3,648,285. Beginning work in process consisted of 71,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 71,000 were from beginning work in process and 669,000 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 Units . % EUP-Materials % Conversion Materials EUP- Conversion Total units

Answer 1

1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	740000	100%	740000	100%	740000
Ending work in process	189000	100%	189000	60%	113400
Total units	929000		929000		853400
2
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			301925		192015
Costs incurred this period			2020575		3648285
Total costs		Costs	2322500	Costs	3840300
÷ Equivalent units of production		EUP	929000	EUP	853400
Cost per equivalent unit of production			2.50		4.50
3
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	740000	2.50	1850000
Conversion	740000	4.50	3330000
Total cost transferred out				5180000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	189000	2.50	472500
Conversion	113400	4.50	510300
Total Cost of ending work in Process				982800
Total costs accounted for				6162800