Question

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 725 000 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 182.000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $471640 of direct materials and $191,790 of conversion cost The direct material cost added in November is $3,156,360, and the conversion cost added is $3,644,010. Beginning work in process consisted of 79000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 79,000 were from beginning work in process and 646,000 units were started and completed during the period Required: For the first process 1. Determine the equivalent units of production with respect to direct materials and conversion

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	725000	100%	725000	100%	725000
Ending work in process	182000	100%	182000	70%	127400
Total units	907000		907000		852400
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			471640		191790
Costs incurred this period			3156360		3644010
Total costs		Costs	3628000	Costs	3835800
÷ Equivalent units of production		EUP	907000	EUP	852400
Cost per equivalent unit of production			4.00		4.50
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	725000	4.00	2900000
Conversion	725000	4.50	3262500
Total cost transferred out				6162500
	EUP	Cost per EUP	Total cost
Cost of ending work in Process
Direct materials	182000	4.00	728000
Conversion	127400	4.50	573300
Total Cost of ending work in Process				1301300
Total cost accounted for				7463800