Question

2. Compute both the direct material cost and the conversion cost per equivalent unit.

ork Saved Help Required information Problem 16-2A 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 first process. During November, the first process transferred 780,000 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 191,000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $568,035 of direct materials and $91,370 of conversion cost. The direct material cost added in November is $3,801,465, and the conversion cost added is $1,736,030. Beginning work in process consisted of 75,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 75,000 were from beginning work in process and 705,000 units were started and completed during the period. Problem 16-2A Part 2 2. Compute both the direct material cost and the conversion cost per equivalent unit. Cost per equivalent unit of production Materials Conversion Total costs Costs Costs EUP EUP + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) < Prey 8 9 of 9 Next >

Answer 1

2) Calculate cost per equivalent unit

Cost per equivalent unit		Materials		Conversion
Beginning WIP		568035		91370
Cost added		3801465		1736030
Total costs	Costs	4369500	Costs	1827400
Equivalent unit of production	EUP	971000	EUP	913700
Cost per equivalent unit of production		4.50		2