Question

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 755,000 units of product to finished goods. At the end of November, the work in process inventory consists of 199,000 units that are 50% complete with respect to conversion. Beginning inventory had $558,090 of direct materials and $128,175 of conversion cost. The direct material cost added in November is $3,734,910, and the conversion cost added is $2,435,325. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 688,000 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 Conversion Total cost of ending work in process Total costs accounted for

Answer 1

Victory Company
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	755000	100%	755000	100%	755000
units of Ending work in process	199000	100%	199000	50%	99500
Equivalent units of production			954000		854500
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$558,090	$128,175
Cost added	$3,734,910	$2,435,325
Total Costs	$4,293,000	$2,563,500
/Equivalent units of Production	954000	854500
Cost per Equivalent unit of Production	$4.50	$3.00
Cost of Beginning Work in Process	$686,265.00
Cost added	$6,170,235.00
Total costs to account for	$6,856,500.00
Total costs accounted for	$6,856,500.00
Difference due to rounding cost / unit	$0.00
Cost Assignment and reconciliation
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	755000	$4.50	$3,397,500
Conversion	755000	$3.00	$2,265,000
Total transferred out			$5,662,500
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	199000	$4.50	$895,500
Conversion	99500	$3.00	$298,500
Total Ending work in process			$1,194,000
Total costs assigned				$6,856,500