Question

Required information 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 735,000 units of product to finished goods. At the end of November, the work in process inventory consists of 182,000 units that are 60% complete with respect to conversion. Beginning inventory had $536,445 of direct materials and $126,630 of conversion cost. The direct material cost added in November is $3,590,055, and the conversion cost added is $2,405,970. Beginning work in process consisted of 63,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 63,000 were from beginning work in process and 672,000 units were started and completed during the period. Problem 20-2A Part 2 2. Compute both the direct material cost and the conversion cost per equivalent unit. Cost per equivalent unit of production Materials Conversion Costs Costs Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) EUP EUP

Answer 1

Cost per equivalent unit of production		Material		Conversion
Beginning work in process		536445		126630
Cost added		3590055		2405970
Total Costs	Costs	4126500	Costs	2532600
Equivalent unit of production	EUP	917000	EUP	844200
Cost per equivalent unit		4.5		3