Resubmitted for easier viewing. Part 1 http://imgur.com/nz3HrHf Part 2 http://im

Question

Resubmitted for easier viewing.

Part 1

http://imgur.com/nz3HrHf

Part 2

http://imgur.com/Q1c05su

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 180.000 units that are 50% complete with respect to conversion. Beginning inventory had $529,425 of direct materials and $81,500 of conversion cost. The direct material cost added in November is S3.543.075. and the conversion cost added is $1,548,500. Beginning work in process consisted of 61.000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed. 51.000 were from beginning work in process and 664.000 units were started and completed during the period. Determine the equivalent units of production with respect to direct materials and conversion. Compute both the direct material cost and the conversion cost per equivalent unit. Compute both the direct material cost and the conversion cost per equivalent unit. 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.)

Explanation / Answer

1: Equivalent units of production:

Equivalent Units of Production (EUP)

Weighted average method

2) Cost per equivalent unit for material and conversion cost:

3) the direct material and conversion cost assigned to completed units and ending work in process inventory:

Equivalent Units of Production (EUP)

Weighted average method

units % Material EUP-Material % Conversion EUP-Conversion Completed and transferred 725,000 100% 725,000 100% 725,000 Ending work in process 180,000 100% 180,000 50% 90,000 Total units 905,000 905,000 815,000

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