Please assist. Thanks! Victory Company uses weighted-average process costing to
ID: 2461051 • Letter: P
Question
Please assist. Thanks!
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 790,000 units of product to finished goods. At the end of November, the work in process inventory consists of 188,000 units that are 70% complete with respect to conversion. Beginning inventory had $190,710 of direct materials and $69,120 of conversion cost. The direct material cost added in November is $1,276,290, and the conversion cost added is $1,313,280. Beginning work in process consisted of 64,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 64,000 were from beginning work in process and 726,000 units were started and completed during the period.
Compute both the direct material cost and the conversion cost per equivalent unit.
Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)
Required: 1. Determine the equivalent units of production with respect to direct materials and conversion.Explanation / Answer
Victory Company 1 EUP -November Details Units % Material EUP Material % Conversion EUP Conversion Out Put Units Trasnferred out 790,000 100% 790,000 100% 790,000 Closing WIP 188,000 100% 188,000 70% 131,600 Total EUP 978,000 921,600 2 Material & Conversion Cost Details Materials Conversion Total Opening WIP 190,710 69,120 259,830 Incurred in Nov 1,276,290 1,313,280 2,589,570 Total Cost 1,467,000 1,382,400 2,849,400 EUP in Nov 978,000 921,600 Cost per EUP $ 1.50 $ 1.50 3 Cost of Units Transferred Out Details Materials Conversion Total EUP transferred out 790,000 790,000 Cost per EUP $ 1.50 $ 1.50 Cost of Units Transferred Out 1,185,000 1,185,000 2,370,000 Cost of closing WIP Details Materials Conversion Total EUP Closing WIP 188,000 131,600 Cost per EUP $ 1.50 $ 1.50 Cost of Units Transferred Out 282,000 197,400 479,400