Chapter 20 Process Costing Victory Company uses weighted-average process costing to account for its production costs. Conversion Cost cost is added evenly throughout the process. Direct materials are added at the beginning of the process osts During November. the company transferred 700,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning inventory had $420,000 of direct materials and S139,000 of conversion cost The direct material cost added in November is $2,220,000, and the conversion cost added is $3.254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from begin ning work in process and 640,000 units were started and completed during the period. Required 1. Determine the equivalent units of production with respect to (a) direct materials and (b) conversion o 2. Compute both the direct material cost and the conversion cost per equivalent unit 3. Compute the direct material cost and the conversion cost assigned to (a) units completed and trans ferred out, and (b) ending work in process inventory Analysis Component 4. The company sells and ships all units to customers as soon as they are completed. Assume that an error is made in determining the percentage of completion for units in ending inventory. Instead of being 30% complete with respect to labor, they are actually 60% complete, write a one-page memo to the plant manager describing how this error affects its November financial statements. Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $84,300 as of October I, which consisted of $17,100 of direct materials and $67.200 of conversion costs. Durino the month the company incurred the following costs