The following information applies to the questions displayed below.] Victory Com
ID: 2578745 • Letter: T
Question
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 720,000 units of product to finished goods. At the end of November, the work in process inventory consists of 184,000 units that are 60% complete with respect to conversion. Beginning inventory had $293,800 of direct materials and $124,560 of conversion cost. The direct material cost added in November is $1,966,200, and the conversion cost added is $2,366,640. Beginning work in process consisted of 65,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 65,000 were from beginning work in process and 655,000 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.
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 720,000 units of product to finished goods. At the end of November, the work in process inventory consists of 184,000 units that are 60% complete with respect to conversion. Beginning inventory had $293,800 of direct materials and $124,560 of conversion cost. The direct material cost added in November is $1,966,200, and the conversion cost added is $2,366,640. Beginning work in process consisted of 65,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 65,000 were from beginning work in process and 655,000 units were started and completed during the period.
Problem 20-2A Part 2
2. Compute both the direct material cost and the conversion cost per equivalent unit.
[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 720,000 units of product to finished goods. At the end of November, the work in process inventory consists of 184,000 units that are 60% complete with respect to conversion. Beginning inventory had $293,800 of direct materials and $124,560 of conversion cost. The direct material cost added in November is $1,966,200, and the conversion cost added is $2,366,640. Beginning work in process consisted of 65,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 65,000 were from beginning work in process and 655,000 units were started and completed during the period.
Problem 20-2A Part 3
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.)
Explanation / Answer
2)
3)
Material conversion units completed and transfered out 720000 720000 Ending WIP 184000 110400 [184000*.60] Equivalent unit 904000 830400Related Questions
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