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 775,000 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 181,000 units that are 80% complete with respect to conversion. Beginning work in process inventory had $559,260 of direct materials and $206,955 of conversion cost. The direct material cost added in November is $3,742,740, and the conversion cost added is $3,932,145. 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 712,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion. Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion EUP- Conversion Units completed and transferred out Ending work in process - units Total units
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 775,000 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 181,000 units that are 80% complete with respect to conversion. Beginning work in process inventory had $559,260 of direct materials and $206,955 of conversion cost. The direct material cost added in November is $3,742,740, and the conversion cost added is $3,932,145. 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 712,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion. Equivalent Units of Production (EUP)- Weighted Average Method Units % Materials EUP- Materials % Conversion EUP- Conversion Units completed and transferred out Ending work in process - units Total units
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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[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 775,000 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 181,000 units that are 80% complete with respect to
conversion. Beginning work in process inventory had $559,260 of direct materials and $206,955 of conversion cost. The
direct material cost added in November is $3,742,740, and the conversion cost added is $3,932,145. 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 712,000 units were
started and completed during the period.
Required:
For the first process:
1. Determine the equivalent units of production with respect to direct materials and conversion.
Equivalent Units of Production (EUP)- Weighted Average Method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
Ending work in process - units
Total units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F239102d1-04c8-4dcb-a4a3-60cc6d722931%2F864c45bf-b2c8-4149-9ce7-80b281420be5%2Fjlmnp47_processed.png&w=3840&q=75)
Transcribed Image Text: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 775,000 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 181,000 units that are 80% complete with respect to
conversion. Beginning work in process inventory had $559,260 of direct materials and $206,955 of conversion cost. The
direct material cost added in November is $3,742,740, and the conversion cost added is $3,932,145. 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 712,000 units were
started and completed during the period.
Required:
For the first process:
1. Determine the equivalent units of production with respect to direct materials and conversion.
Equivalent Units of Production (EUP)- Weighted Average Method
Units
% Materials
EUP- Materials
% Conversion
EUP- Conversion
Units completed and transferred out
Ending work in process - units
Total units
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