7 Required information Problem 20-2A Weighted average: Cost per equivalent unit;

Question

7 Required information Problem 20-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 Pert 3 of 3 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 company transferred 760,000 units of product to finished goods. At the end of November, the work in process inventory consists of 192,000 units that are 90% complete with respect to conversion Beginning inventory had $495,040 of direct materials and $209,880 of conversion cost. The direct material cost added in N conversion cost Odded is S3.987 720 Beginning work in process consisted of 80,000 units that were 100% complete with respect to drect materials and 80% complete witn respect to conversion. Of the units completed, 80,000 were from beginning work in process and 680,000 units were started and completed during the period. the 15 ember is $3.312.960, and the Problem 20.2A Part 3

Explanation / Answer

Equivalent Units Under Weighted Average Method: Material Conversion Cost Units Completed & Transferred: 760000 760000 Units in Closing Stock 192000 172800 192000*90% 952000 932800 Cost Per Equivalent Unit: Material Conversion Cost Opening Costs: 495040 209880 Cost Incurred During the Period 3312960 3987720 Total Costs 3808000 4197600 8005600 Equivalent Units 952000 932800 Cost Per Equivalent Unit: 4.00 4.50 Main Answer: Cost of Units Transferred Out: EUP Cost Per EUP Total Cost Direct Material 760000 4.00 3040000 Conversion 760000 4.50 3420000 Total Costs Transferred Out 6460000 Cost of Ending WIP: Direct Material 192000 4.00 768000 Conversion 172800 4.50 777600 Total Costs of Closing WIP 1545600 Total Costs Accounted For 8005600

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