Questions 3-5 (of 7) Problem 3-2A Weighted average: Cost per equivalent unit, co
ID: 2611529 • Letter: Q
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Questions 3-5 (of 7) Problem 3-2A Weighted average: Cost per equivalent unit, costs assigned to products LO C2, C3 The following information spplies to the questions displeyed below) Victory Company uses weighted average process costing to eccount for its production costs Conversion cost is added evenly throughout the process Diret matertals are added at the beginning of the process During November, the company transferred 700.000 units of product to finished goods. At the end of November the work in process inventory consists of 180000 units that are 30% complete with respect to conversion Begnning inventory hed $420000 of drect matenals and $139.000 of conversion cost. The direa material cost added in Novermber is $2.220.000, and the conversion cost added is $3,254000 Begnning work in process cosisted of 60.000 units that were 100% complete with resped to drea materials and B0% compete with respect to conversion. Of the units completed 60.000 were fram beginning work in process and 640.000 units were started and completed during the penod References Section Break , obletti 3.2A Weighted egulvalent unit, costs sssigned to products average Cost perExplanation / Answer
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Labor
EUP- Labor
Units completed and transferred out
700,000
100%
700,000
100%
700,000
Ending goods in process - units
180,000
100%
180,000
30%
54,000
Total units
880,000
880,000
2
Cost per equivalent unit of production
Materials
Labor
Cost of beginning goods in process
$420,000
$139,000
Costs incurred this period
2,220,000
3,254,000
Total costs
Costs
$2,640,000
Costs
$3,393,000
÷ Equivalent units of production
EUP
880,000
EUP
754,000
Cost per equivalent unit of production (rounded to 2 decimals)
$3.00
$4.50
3
Cost of units transferred out:
EUP
Cost per EUP
Total cost
Direct materials
700,000
$3.00
2,100,000
Direct labor
700,000
$4.50
3,150,000
Total costs transferred out
$5,250,000
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
180,000
$3.00
540,000
Direct labor
54,000
$4.50
243,000
Total cost of ending goods in process
$783,000
Total costs accounted for
Equivalent units of production (EUP)- weighted average method
Units
% Materials
EUP- Materials
% Labor
EUP- Labor
Units completed and transferred out
700,000
100%
700,000
100%
700,000
Ending goods in process - units
180,000
100%
180,000
30%
54,000
Total units
880,000
880,000
754,0002
Cost per equivalent unit of production
Materials
Labor
Cost of beginning goods in process
$420,000
$139,000
Costs incurred this period
2,220,000
3,254,000
Total costs
Costs
$2,640,000
Costs
$3,393,000
÷ Equivalent units of production
EUP
880,000
EUP
754,000
Cost per equivalent unit of production (rounded to 2 decimals)
$3.00
$4.50
3
Cost of units transferred out:
EUP
Cost per EUP
Total cost
Direct materials
700,000
$3.00
2,100,000
Direct labor
700,000
$4.50
3,150,000
Total costs transferred out
$5,250,000
Costs of ending goods in process
EUP
Cost per EUP
Total cost
Direct materials
180,000
$3.00
540,000
Direct labor
54,000
$4.50
243,000
Total cost of ending goods in process
$783,000
Total costs accounted for
$6,033,000Related Questions
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