Question

In: Accounting

Problem 20-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [The...


Problem 20-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3

[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 730,000 units of product to finished goods. At the end of November, the work in process inventory consists of 183,000 units that are 60% complete with respect to conversion. Beginning inventory had $356,070 of direct materials and $83,980 of conversion cost. The direct material cost added in November is $2,382,930, and the conversion cost added is $1,595,620. Beginning work in process consisted of 70,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 70,000 were from beginning work in process and 660,000 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.

2. Compute both the direct material cost and the conversion cost per equivalent unit.


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.)


Solutions

Expert Solution

1. Determine the equivalent units of production with respect to direct materials and conversion.

Physical Unit % EUP-Material % EUP-Conversion
Unit completed and transferred out 730000 100% 730000 100% 730000
Ending work in process 183000 100% 183000 60% 109800
Equivalent unit of production 913000 913000 839800

2. Compute both the direct material cost and the conversion cost per equivalent unit.

Material Conversion
Beginning work in process 356070 83980
Cost added 2382930 1595620
Total Cost 2739000 1679600
Equivalent unit 913000 839800
Cost per equivalent unit 3 2

3) Cost unit transferred out

Material Conversion total cost
Cost of unit transferred out 730000*3 = 2190000 730000*2 = 1460000 3650000

Cost of ending work in process

Material Conversion Total
Cost of ending work in process 183000*3 = 549000 109800*2 = 219600 768600

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Problem 16-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [The...
Problem 16-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [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 740,000 units of product to finished goods. At the end of November, the work in process inventory consists of 191,000 units...
Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The...
Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 23,200 units of product to finished goods inventory. Its 3,200 units of beginning work in process consisted of $20,000 of...
Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 Tamar...
Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 29,200 units of product to finished goods inventory. Its 4,400 units of beginning work in process consisted of $21,200 of direct materials and $284,940 of conversion costs. It has...
Problem 20-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces...
Problem 20-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $98,100 as of October 1, which consists of $21,000 of direct materials and $77,100 of conversion costs....
Required information Problem 3-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3,...
Required information Problem 3-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 22,700 units of product to finished goods inventory. Its 3,100 units of beginning work in process consisted of...
Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces...
Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $95,300 as of October 1, which consists of $20,400 of direct materials and $74,900 of conversion costs....
Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces...
Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4 Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $104,300 as of October 1, which consists of $23,100 of direct materials and $81,200 of conversion costs....
Problem 20-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The...
Problem 20-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.] Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 25,800 units to the blending department. Of the...
Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The...
Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.] Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 23,000 units to the blending department. Of the...
Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The...
Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4 [The following information applies to the questions displayed below.] Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 26,000 units to the blending department. Of the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT