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 755,000 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 182,000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $365,430 of direct materials and $110,300 of conversion cost. The direct material cost added in November is $2,445,570, and the conversion cost added is $2,095,700. Beginning work in process consisted of 74,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 74,000 were from beginning work in process and 681,000 units were started and completed during the period. 2. Compute both the direct material cost and the conversion cost per equivalent unit Answer is complete but not entirely correct. Cost per equivalent unit of production Materials Costs of beginning work in process $ 365,430 Costs incurred this period 2,445,570 Total costs Costs $ 2,811,000 + Equivalent units of production EUP 13 $ Cost per equivalent unit of production (rounded to 2 decimals) 2,811,000.00 OO Costs EUP Conversion S 110,300 2,095,700 $ 2,206,000 1 x $ 2.206,000.00 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 755,000 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 182,000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $365,430 of direct materials and $110,300 of conversion cost. The direct material cost added in November is $2,445,570, and the conversion cost added is $2,095,700. Beginning work in process consisted of 74,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 74,000 were from beginning work in process and 681,000 units were started and completed during the period. 3. 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.) Answer is complete but not entirely correct. Cost of units transferred out: EUP 755,000 755,000 Cost per EUP $ 3.00 $ 1.00 Direct materials Conversion Total costs transferred out Costs of ending work in process Total cost $ 2,265,000 755,000 $ 3,020,000 Cost per EUP Total cost EUP 3.00 1.00 $ Direct materials Conversion Total costs of ending work in process Total costs accounted for 182,000 $ 127.400$ 546,000 127,400 673.400 $ 3.693,400
