Question

Check 2 Part 1 of 3 5 points 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 process. During November, the company transferred 755,000 units of product to finished goods. At the end of November, the work in process inventory consists of 186.000 units that are 60% complete with respect to conversion Beginning inventory had $305,825 of direct materials and $151655 of conversion cost. The direct material cost added in November is $2,046,675, and the conversion cost added is $2,001445, Beginning work in process consisted of 63.000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 63,000 were from beginning work in process and 692,000 units were started and completed during the period book Problem 16-2A Part 1 References Required: 1. Determine the equivalent units of production with respect to direct materials and conversion Equivalent Units of Production (EUP) Weighted Average Method Units % Materials EUP. Materials Conversion EUP.Conversion Total units

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer 2 3 Part 1) 4 Equivalent unit of production (EUP) - Weighted Average Method 5 Units % Materials EUP Materials % Conversion EUP Conversion 6 Units completed and transferred out 755000 100% 755000 100% 755000 7 Units in ending inventory 186000 100% 186000 60% 111600 8 Total Units 941000 941000 866600 9 10 Part 2) 11 12 Cost per equivalent unit of production Materials Conversion 13 305825 151655 14 2046675 2881445 15 Total costs Costs 2352500 Costs 3033100 16 / equivalent units of production EUP 941000| EUP 866600 17 Cost per equivalent unit of Production 2.5 3.5 18

EUP Cost Per EUP Total Costs 755000 2.5 1887500 755000 3.5 2642500 4530000 19 Part 3) 20 21 Cost of units transferred out 22 Direct Material 23 Conversion 24 Total costs transferred out 25 Cost of ending work in process 26 Direct Material 27 Conversion 28 Total cost of ending work in process 29 Total costs accounted for 30 EUP Cost Per EUP 186000 2.5 111600 3.5 Total Costs 465000 390600 855600 5385600