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 process. During November, the company transferred 725,000 units of product to finished goods. At the end of November, the work in process inventory consists of 191,000 units that are 60% complete with respect to conversion. Beginning inventory had $595,400 of direct materials and $125,940 of conversion cost. The direct material cost added in November is $3,984,600, and the conversion cost added is $2,392,860. 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.

Problem 20-2A Part 1

Required: 1. Determine the equivalent units of production with respect to direct materials and conversion.