Required information [The following information applies to the questions display
ID: 2431088 • Letter: R
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Required information [The following information applies to the questions displayed below.] 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 795,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 80% complete with respect to conversion. Beginning inventory had $253,500 of direct materials and $140,850 of conversion cost. The direct material cost added in November is $1,696,500, and the conversion cost added is $2,676,150. 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 728,000 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.) Cost per EUP Cost of units transferred out EUP Total cost Direct materials Conversion Total costs transferred out Cost per Costs of ending work in process EUP Total cost EUP $0.00S $ 0.00 Direct materials Conversion Total cost of ending work in process Total costs accounted forExplanation / Answer
Answers
Material
Conversion
Units Transferred:
795,000
795,000
% completed
100%
100%
Equivalent Units (1)
795,000
795,000
Ending WIP units:
180,000
180,000
% completed
100%
80%
Equivalent Units (2)
180,000
144,000
Total Equivalent Units
975,000
939,000
Cost per Equivalent Unit of production
Materials
Conversion
Beginning WIP cost
$ 253,500.00
$ 140,850.00
Cost added during November
$ 1,696,500.00
$ 2,676,150.00
Total Costs
$ 1,950,000.00
$ 2,817,000.00
Equivalent Units of Production [Working #1 total]
975,000.00
939,000.00
Cost per Equivalent Unit of production
$ 2.00
$ 3.00
Cost of Units Transferred out:
EUP [Working #1]
Cost per EUP [Working #2]
Total Cost
Direct Material
795,000
$ 2.00
$ 1,590,000.00
Conversion
795,000
$ 3.00
$ 2,385,000.00
Total Cost transferred out
$ 3,975,000.00
Cost of Ending WIP:
EUP [Working #1]
Cost per EUP [Working #2]
Total Cost
Direct Material
180,000
$ 2.00
$ 360,000.00
Conversion
144,000
$ 3.00
$ 432,000.00
Total cost of ending WIP
$ 792,000.00
Total cost accounted for
$ 4,767,000.00
Material
Conversion
Units Transferred:
795,000
795,000
% completed
100%
100%
Equivalent Units (1)
795,000
795,000
Ending WIP units:
180,000
180,000
% completed
100%
80%
Equivalent Units (2)
180,000
144,000
Total Equivalent Units
975,000
939,000
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