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 process. During November, the company transferred 790,000 units of product to finished goods. At the end of November, the work in process inventory consists of 188,000 units that are 60% complete with respect to conversion. Beginning inventory had $190,710 of direct materials and $225.700 of conversion cost. The direct material cost added in November is $1,276,290, and the conversion cost added is $4,288,300. Beginning work in process consisted of 62,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 62,000 were from beginning work in process and 728,000 units were started and completed during the period. 2. Compute both the direct material cost and the conversion cost per equivalent unit. Cost per equivalent unit of production Materials Conversion Total costs Equivalent units of production Costs EUP Costs EUP Cost per equivalent unit of production (rounded to 2 decimals) < Prey 23 of 3 Next >

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	790000	100%	790000	100%	790000
Ending work in process	188000	100%	188000	60%	112800
Total units	978000		978000		902800
2
Cost per equivalent unit of production		Materials		Conversion
Cost of beginning work in process		190710		225700
Costs incurred this period		1276290		4288300
Total costs	Costs	1467000	Costs	4514000
÷ Equivalent units of production	EUP	978000	EUP	902800
Cost per equivalent unit of production		1.50		5.00