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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 first process. During November, the first process transferred 715,000 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 180,000 units that are 80% complete with respect to conversion. Beginning work in process inventory had $465,400 of direct materials and $171,800 of conversion cost. The direct material cost added in November is $3,114,600, and the conversion cost added is $3,264,200. 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 652,000 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. Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion Units completed and transferred out 715,000 100% 715,000 100% Ending work in process - units 180,000 100% 180,000 80% Total units 895,000 895,000 EUP-Conversion 715,000 144,000 859,000 2. Compute both the direct material cost and the conversion cost per equivalent unit. Materials Conversion Cost per equivalent unit of production Costs of beginning work in process Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Costs Costs EUP EUP 0 0 After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey wondered if it was time to critically analyze overhead costs at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made up most of its overhead. Additional information about overhead follows. Activity Setting up machines Inspecting components Providing utilities Cost Driver $ 22,960 28 batches $ 4,900 4,900 parts $ 9,800 4,900 machine hours Overhead has been applied to output at a rate of 45% of direct labor costs. The following data pertain to Job 615. Direct materials Direct labor Batches Number of parts Machine hours $ 2,800 $3,000 2 batches 570 parts 690 machine hours Required: 1. Classify each of its three overhead activities as unit level, batch level, product level, or facility level. Setting up machines Inspecting components Providing utilities