Question

Help Sav 14 Part 2 of 3 3 points Required information 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 first process. During November, the first process transferred 810,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 205,000 units that are 90% complete with respect to conversion. Beginning work in process inventory had $263,900 of direct materials and $124,313 of conversion cost. The direct material cost added in November is $1,766,100, and the conversion cost added is $2,361,937. 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, 67000 were from beginning work in process and 743,000 units were started and completed during the period. eBook Print 2. Compute both the direct material cost and the conversion cost per equivalent unit Cast per equivalent unit of production Materials Conversion Total costs -Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Costs EUP Costs M Saw Hall < Prev 14 15 of 17 Next >

Answer 1

Cost per equivalent unit of production		Materials		Conversion
Beginning WIP		$ 263,900		$ 124,313
Cost added during the period		$ 1,766,100		$ 2,361,937
Total costs	Costs	$ 2,030,000	Costs	$ 2,486,250
÷ Equivalent units of production	EUP	1015000	EUP	994500
Cost per equivalent unit of production		$ 2.00		$ 2.50

Calculations:

Equivalent units of production
	Materials	Conversion
Units transferred out	810000	810000
Ending WIP
[205,000 X 100%]	205000
[205,000 X 90%]		184500
Equivalent units of production	1015000	994500