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 725,000 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 192,000 units that are 60% complete with respect to conversion. Beginning work in process inventory had $357,630 of direct materials and $84,020 of conversion cost. The direct material cost added in November is $2,393,370, and the conversion cost added is $1,596,380. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 658,000 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
Total costs	Costs		Costs
Equivalent units of production	EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)		0		0