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 745,000 units of product to finished goods. At the end of November, the work in process inventory consists of 181,000 units that are 60% complete with respect to conversion. Beginning inventory had $300,950 of direct materials and $170,720 of conversion cost. The direct material cost added in November is $2,014,050, and the conversion cost added is $3,243,680. Beginning work in process consisted of 70,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 70,000 were from beginning work in process and 675,000 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 % Materials EUP- Materials % Conversion Units EUP- Conversion Total units

Answer 1

1.

Equivalent units of production (EUP) - Weighted Average method
	Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Units Transferred Out	745000	100%	745000	100%	745000
units of Ending work in process	181000	100%	181000	60%	108600
Equivalent units of production			926000		853600

2.

Cost per EUP			Material		Conversion
Cost of beginning Work in Process			$3,00,950		$1,70,720
Cost Addrd during the period			$20,14,050		$32,43,680
Total Costs		Costs	$23,15,000	Costs	$34,14,400
/Equivalent units of Production		EUP	926000	EUP	853600
Cost per Equivalent unit of Production			$2.50		$4.00

3.

Cost of units transferred Out:	EUP	Cost per EUP	Total Cost
Direct Material	745000	$2.50	$18,62,500
Conversion costs	745000	$4.00	$29,80,000
Total Costs transferred out				$48,42,500
Cost of Ending work in process:	EUP	Cost per EUP	Total Cost
Direct Material	181000	$2.50	$4,52,500
Conversion costs	108600	$4.00	$4,34,400
Total Cost of Ending work in process				$8,86,900
Total Costs accounted for				$57,29,400