Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 750,000 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 194.000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $490,880 of direct materials and $221,450 of conversion cost. The direct material cost added in November is $3,285,120, and the conversion cost added is $4,207,550. Beginning work in process consisted of 76,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 76,doo were from beginning work in process and 674,000 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 EUP. Conversion Total units 2. Compute both the direct material cost and the conversion cost per equivalent unit. Cost per equivalent unit of production Materials Conversion Costs Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Costs EUP EUP cos irt 3 of 3 3. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending process inventory. (Round "Cost per EUP" to 2 decimal places.) EUP Cost per EUP Total cost Book Print Cost of units transferred out: Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Terences Cost per EUP Total cost 0.00 Total costs of ending work in process Total costs accounted for

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Complete Business Statistics

Authors: Amir Aczel, Jayavel Sounderpandian

7th Edition

9780071077903, 73373605, 71077901, 9780073373607, 77239695, 978-0077239695

Students also viewed these Accounting questions

Question

What a re va lues? (p. 5 2)

Answered: 1 week ago