Problem 20-1A Weighted average: Cost per equivalent unit; costs assigned to products P1 Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Conversion Costs added this period Direct materials Beginning work in process inventory Direct materials Conversion Total costs to account for Unit 60,000 820,000 700,000 180,000 Check (2) Conversion cost per equivalent unit, $4.50 Direct Materials Percent Complete Percent Complete 100% 100% $420,000 Conversion 139,000 $559,000 Required 1. Compute equivalent units of production for both direct materials and conversion. 2. Compute cost per equivalent unit of production for both direct materials and conversion. 2,220,000 3,254,000 5,474,000 $6,033,000 80% 30% 3. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory. Page 760

Problem 20-1A Weighted average: Cost per equivalent unit; costs assigned to products P1 Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Conversion Costs added this period Direct materials Beginning work in process inventory Direct materials Conversion Total costs to account for Unit 60,000 820,000 700,000 180,000 Check (2) Conversion cost per equivalent unit, $4.50 Direct Materials Percent Complete Percent Complete 100% 100% $420,000 Conversion 139,000 $559,000 Required 1. Compute equivalent units of production for both direct materials and conversion. 2. Compute cost per equivalent unit of production for both direct materials and conversion. 2,220,000 3,254,000 5,474,000 $6,033,000 80% 30% 3. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory. Page 760

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Description: E 3McGrawHillconnect®Problem 20-1A Weighted average: Cost per equivalent unit; costs assigned to products P1Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

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Problem 20-1A Weighted average: Cost per equivalent unit; costs assigned to products P1
Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly
throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process
follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
C
$
Check (2) Conversion cost per equivalent unit, $4.50
4
Conversion
Costs added this period
Direct materials
%
Beginning work in process inventory
Direct materials
Conversion
Total costs to account for
5
Required
1. Compute equivalent units of production for both direct materials and conversion.
2. Compute cost per equivalent unit of production for both direct materials and conversion.
Unit
Oll
60,000
820,000
700,000
180,000
A
6
Direct Materials
Percent Complete
$ 420,000
100%
100%
3. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory.
19
139,000 $559,000
2,220,000
3,254,000 5,474,000
$6,033,000
&
7
Conversion
Percent Complete
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O
*
8
CO
80%
30%
O
D
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Page 760
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