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 760,000 units of product to finished goods. At the end of November, the work in process inventory consists of 197,000 units that are 40% complete with respect to conversion. Beginning inventory had $248,820 of direct materials and $209,700 of conversion cost. The direct material cost added in November is $1,665,180, and the conversion cost added is $3,984,300. Beginning work in process consisted of 69,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 69,000 were from beginning work in process and 691,000 units were started and completed during the period. 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 Materials % Conversion Units completed and transferred out 760,000 100% 760,000 100% Ending work in process - units 197,000 100% 197,000 40% Total units 957,000 957,000 EUP. Conversion 760,000 78,800 838,800 WWWWWWWWWWYSE wwwwwwwwwwww

Answer 1

1
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	760000	100%	760000	100%	760000
Ending work in process-units	197000	100%	197000	40%	78800
Total units	957000		957000		838800
2
Cost per equivalent unit of production		Materials		Conversion
Cost of beginning work in process		248820		209700
Costs incurred this period		1665180		3984300
Total costs	Costs	1914000	Costs	4194000
÷ Equivalent units of production	EUP	957000	EUP	838800
Cost per equivalent unit of production		2.00		5.00
3
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	760000	2.00	1520000
Conversion	760000	5.00	3800000
Total cost transferred out				5320000
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	197000	2.00	394000
Conversion	78800	5.00	394000
Total Cost of ending work in Process				788000
Total cost accounted for				6108000