Question

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 first process. During November, the first process transferred 750,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 194.000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $490,880 of direct materials and $221,450 of conversion cost. The direct material cost added in November is $3,285,120, and the conversion cost added is $4,207,550. Beginning work in process consisted of 76,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 76,doo were from beginning work in process and 674,000 units were started and completed during the period.

Answer 1

B 1 1) 2 Equivalent units of production (EUP)- weighted average method 3 Units % Materials EUP- Materials % Conversion EUP-Conversion 4 Units completed and transferred out 750,000 100% $ 750,000 100% $ 750,000 5 Units of ending goods in process 194,000 100% $ 194,000 70% $ 135,800 6 Equivalent units of production 944,000 $ 944,000 885,800 7 2) 8 Cost per equivalent unit of production Materials Conversion 9 Cost of beginning goods in process $ 490,880 221,450 10 Costs incurred this period $ 3,285,120 $ 4,207,550 11 Total costs Costs $ 3,776,000 costs 4,429,000 12 - Equivalent units of production EUP 944,000 EUP 885,800 13 Cost per equivalent unit of production $ 4.00 $ 5.00 14 3) 15 16 Cost of units transferred out EUP Cost per EUP Total cost 17 Direct materials 750,000 $ 4.00 $ 3,000,000 18 Conversion 750,000 $ 5.00 3,750,000 19 Total costs transferred out $ 6,750,000 20 Costs of ending work in process EUP Cost per EUP Total cost 21 Direct materials 194,000 $ 4.00$ 776,000 22 Conversion 135,800 $ 5.00 $ 679,000 Total cost of ending work in process $ 1,455,000 24 Total costs accounted for $ 8,205,000

А B C D 1 1) 2 Equivalent units of production (EUP)-weighted average method 3 Units % Materials EUP- Materials % Conversion EUP-Conversion 4 Units completed and transferred out 7500001 =+B4*C4 =+B4*E4 5 Units of ending goods in process 1940001 =+B5*C5 =+B5*E5 6 Equivalent units of production =+B4+B5 =+D4+D5 =+F4+F5 7 2) 8 Cost per equivalent unit of production Materials Conversion 9 Cost of beginning goods in process 490880 221450 10 Costs incurred this period 3285120 4207550 11 Total costs =+D9+D10 Costs =+F9+F10 12 - Equivalent units of production =+D6 EUP =+F6 13 Cost per equivalent unit of production =+D11/D12 =+F11/F12 14 3) 15 16 Cost of units transferred out EUP Cost per EUP Total cost 17 Direct materials =+D4 =+D13 =+B17*C17 18 Conversion =+F4 =+F13 =+B18*C18 19 Total costs transferred out =+D17+D18 20 Costs of ending work in process EUP Cost per EUP Total cost 21 Direct materials =+D5 =+D13 =+B21*C21 22 Conversion =+F5 =+F13 =+B22*C22 23 Total cost of ending work in process =+D21+D22 24 Total costs accounted for =+E19+E23