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Required information [The following information applies to the questions displayed below) Victory Company uses weighted-average process costing to account for its production costs
Required information [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 first process. During November, the first process transferred 785,000 units of product to the second process. Additional information for the first process follows.
At the end of November, work in process inventory consists of 200,000 units that are 70% complete with respect to conversion. Beginning work in process inventory had $256,100 of direct materials and $161,875 of conversion cost. The direct material cost added in November is $1,713,900, and the conversion cost added is $3,075,625. 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, 61,000 were from beginning work in process and 724,000 units were started and completed during the period.
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.)
Cost of units transferred out: EUP Cost per EUP Total cost Direct materials . . Conversion •.' Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials •. $ 0.00 $ 0 Conversion J. $ 0.00 0 Total costs of ending work in process Total costs accounted for
Expert Solution
1) Computation of Equivalent Units of Production:
| Physical Unit | % | EUP-Material | % | EUP-Conversion | |
| Unit completed and transferred out | 724,000 | 100% | 724000 | 100% | 724000 |
| Ending work in process | 200,000 | 100% | 200000 | 70% | 140000 |
| Equivalent unit of production | 924,000 | 924000 | 864000 | ||
2) Computation of Cost per Equivalent Units:
| Material | Conversion | |
| Beginning work in process | $256,100 | $161,875 |
| Cost added | $1,713,900 | 3075625 |
| Total Cost | $1,970,000 | $3,237,500 |
| Equivalent unit | 924000 | 864000 |
| Cost per equivalent unit | $2.13 | $3.75 |
3) Computation of Cost of Units Transferred Out and Cost of Ending Work in Process:
| Cost of units transferred out: | EUP | Cost per EUP | Total cost |
| Direct materials | $724,000.00 | $2.13 | $1,543,593 |
| Conversion | $724,000.00 | $3.75 | $2,712,905 |
| Total costs transferred out | $4,256,498 | ||
| Costs of ending work in process | EUP | Cost per EUP | Total cost |
| Direct materials | 200000 | $2.13 | $426,407 |
| Conversion | 140000 | $3.75 | $524,595 |
| Total cost of ending work in process | $951,002 | ||
| Total costs accounted for | $5,207,500 |
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