In: Finance
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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 715,000
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
$297,050 of direct materials and $61,088 of conversion cost. The
direct material cost added in November is $1,987,950, and the
conversion cost added is $1,160,662. Beginning work in process
consisted of 71,000 units that were 100% complete with respect to
direct materials and 80% complete with respect to conversion. Of
the units completed, 71,000 were from beginning work in process and
644,000 units were started and completed during the period.
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.)