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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 800,000 units of product to finished goods. At the end of November, the work in process inventory consists of 191,000 units that are 50% complete with respect to conversion. Beginning inventory had $515,320 of direct materials and $201,488 of conversion cost. The direct material cost added in November is $3,448,680, and the conversion cost added is $3,828,262. Beginning work in process consisted of 80,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 80,000 were from beginning work in process and 720,000 units were started and completed during the period.

Required:
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	% Conversion	EUP-Conversion
Beginning work in process inventory - units Ending work in process - units Units completed and transferred out Units started this period
Beginning work in process inventory - units Ending work in process - units Units completed and transferred out Units started this period
Total units

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

Cost per equivalent unit of production		Materials		Conversion
Costs incurred this period Costs of beginning work in process Costs of ending work in process Costs transferred out
Costs incurred this period Costs of beginning work in process Costs of ending work in process Costs transferred out
Total costs	Costs		Costs
÷ Equivalent units of production	EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)		0		0

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		$0.00	0
Total cost of ending work in process
Total costs accounted for

Answer 1

1
Equivalent units of production (EUP)- weighted average method
	Units	% Materials	EUP- Materials	% Conversion	EUP-Conversion
						Units completed and transferred out	800,000	100%	800,000	100%	800,000
Ending goods in process - units	191,000	100%	191,000	50%	95,500
Total units	991,000		991,000		895,500
2
Cost per equivalent unit of production			Materials		Conversion
						Cost of beginning goods in process			$515,320		$201,488
Costs incurred this period			3,448,680		3,828,262
						Total costs		Costs	$3,964,000	Costs	$4,029,750
÷ Equivalent units of production		EUP	991,000	EUP	895,500
						Cost per equivalent unit of production (rounded to 2 decimals)			$4.00		$4.50
3
Cost of units transferred out:	EUP	Cost per EUP	Total cost
Direct materials	800,000	$4.00	3,200,000
Conversion	800,000	$4.50	3,600,000
Total costs transferred out				$6,800,000
Costs of ending goods in process	EUP	Cost per EUP	Total cost
Direct materials	191,000	$4.00	764,000
Conversion	95,500	$4.50	429,750
Total cost of ending goods in process				$1,193,750
Total costs accounted for				$7,993,750