problem 20-2A

and

problem 20-4A

all please

Problem 20-2A Weighted average: Cost per equivalent unit: costs assigned to products C2 C3 Victory Company uses weighted average process costing to account for its production costs. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. During November, the first process transferred 700,000 units of product to the second process. At the end of November, work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning work in process inventory had $420,000 of direct materials and $139,000 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 beginning work in process and 640,000 units were started and completed during the period. Required For the first process: 1. Determine the equivalent units of production with respect to (a) direct materials and (b) conversion. 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. Check (2) Conversion cost per equivalent unit. $4.50 (3b) $783,000 Tamar Co. manufactures a single product in two departments: Forming and Assembly. All direct materials are added at the beginning of the forming process. Conversion costs are added evenly throughout each process. During May, the Forming department started 21,600 units, and completed and transferred 22,200 units of product to the Assembly department. The Forming department's 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department. Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates C2 C3 P4 Required 1. Prepare the Forming department's process cost summary for May using the weighted average method. Check (1) EUP for 2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly. conversion, 24.120 (2) Cost transferred out. $2,664,000 Analysis Component 3. The costing process depends on numerous estimates. a. Identify two major estimates that determine the cost per equivalent unit. b. Assume management compensation is based on maintaining low inventory amounts. Is manage- ment more likely to overestimate or understimate the percentage complete