Question

Required information Problem 20-2A Welghted average: Cost per equlvalent unlt: 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 805.000 units of product to finished goods. At the end of November, the work in process Inventory consists of 183,000 units that are 40% complete with respect to conversion. Beginning Inventory had 5521,100 of direct materials and $87820 of conversion cost. The direct material cost added in November is $2.148.900, and the conversion cost added is $1.668.580. 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 742.000 units were started and completed during the period. Problem 20-2A Part 1 Required: 1. Determine the equivalent units of production with respect to direct materials and conversion Equivalent Units of Production (EUP)-Weighted Average Method Units 4 Materials EUP- Materials Conversion

Answer 1

1. Equivalent units of production - weighted average Units completed and transferred out Units of ending goods in process Units % Material EUP- Material % conversion (EUP- conversion ab a*c 805,000| 100% 805,000| 100% 805,000 183,000 100% 183.000 40% 73.200 988,000 878,200 Total uni 2.Cost per equivalent unit of production Cost of beginning goods in process Costs incurred this period Total costs Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material 321100 2148900 2470000 Costs 988,000 EUP 2.50 conversion 87,820 1.668,580 1756400 878,200 2.00 Costs EUP 3.Cost of units transferred out: EUP Cost per EUP Total cost | 805,000 805,000 2.50 2.00 2,012,500 1.610.000 3,622,500 Direct Material conversion Total costs transferred out Costs of ending work in process Direct Material conversion Total cost of ending work in process EUP Cost per EUP Total cost 183,000 2.50 457,500 73,200 2.00 146,400 603,900