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99% View History Bookmarks Window Help Help Save & Exit Check r Required information The following information applies to the questions displayed below.) Victory Company uses 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 181,000 units that are 50% complete with respect to conversion Beginning inventory had $190,320 of direct materials and $110,688 of conversion cost. The direct material cost added in November is $1.273.680, and the conversion cost added is $2,103,062. Beginning work in process consisted of 77000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion of the units completed, 77000 were from beginning work in process and 718,000 units were started and completed during the period. weighted-average process costing to account for its production costs. Conversion cost is 1. Determine the equivalent units of production with respect to direct materials and conversion. Equivalent Units of Production (EUP)-Weighted Average Method Units %Materials EUP. Materials % EUP-Cogyers Total unts Prev7 Next 9of9 Next 3

Solution

UNITS TO ACCOUNT FOR: Beginning Work in Process units 77,000 Add: Units Started in Process 899,000 Total Units to account for: 976,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 795,000 Ending Work in Process 181,000 Total Units to be accounted for: 976,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 795,000 100% 795,000 Ending Work in Process 100% 181,000 50% 90,500 Total Equivalent units 976,000 885,500 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 190,320 110,688 Cost Added during May 1,273,680 2,103,062 Total Cost to account for: 1,464,000 2,213,750 Equivalent Units 976,000 885,500 Cost per Equivalent unit 1.5 2.5 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (795000 units) Equivalent unit Cost per EU Total Cost Material 795,000 1.5 1192500 Conversion Cost 795,000 2.5 1987500 Total Cost of Units completed and transferred out: 3180000 Ending Work in process (181000 units) Equivalent unit Cost per EU Total Cost Material 181,000 1.5 271500 Conversison Cost 90,500 2.5 226250 Total cost of Ending Work in process: 497,750