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.**Units Information:**- **Beginning work in process inventory:** - Units: 74,000 - Direct Materials Percent Complete: 100% - Conversion Percent Complete: 80%- **Units started this period:** 905,000- **Units completed and transferred out:** 790,000- **Ending work in process inventory:** - Units: 189,000 - Direct Materials Percent Complete: 100% - Conversion Percent Complete: 70%**Cost Information:**- **Beginning work in process inventory:** - Direct materials: $445,445 - Conversion: $207,518 - Total Beginning Cost: $652,963- **Costs added this period:** - Direct materials: $2,981,055 - Conversion: $3,942,832 - Total Added Cost: $6,923,887- **Total costs to account for:** $7,576,850**Cost Assignment—Weighted Average:**3. Assign costs to the department’s output—specifically, to the units transferred out and to the units in ending work in process inventory. *(Round "Cost per EUP" to 2 decimal places.)*| **Cost Assignment—Weighted Average** | **EUP** | **Cost per EUP** | **Total Cost** ||--------------------------------------|---------|------------------|----------------|| **Completed and transferred out** | | | || Direct materials | | | || Conversion | | | || **Ending work in process** | | | || Direct materials | | | || Conversion | | | || **Total costs accounted for** | | | |This setup allows students to practice assigning costs using the weighted average method, understanding the flow of units and costs throughout a production process.

Name: Victory Company uses weighted average process costing. The company ha
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Description: 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 th

Introduction: Under weighted average method of process costing, all costs incurred on the units till date are considered to be incurred during the current period and accordingly equivalent cost per unit is calculated. Formula for equivalent cost per unit is as under: Equivalent cost per unit = Costs incurred till date / Number of equivalent unitsCalculation of equivalent units: Statement of Equivalent units Equivalent units Direct materials Conversion Costs Particulars Physical units % complete Equivalent units % complete Equivalent units Work in process, beginning 74,000 Units started during the period 905,000 To account for 979,000 Completed and transferred out units 790,000 100% 790,000 100% 790,000 Work in process, ending 189,000 100% 189,000 70% 132,300 Accounted for 979,000 Equivalent units of the work done in the current period 979,000 922,300Calculation of cost per equivalent unit: Particulars Total production costs Direct materials Conversion costs Work in process, beginning 652,963 445,445 207,518 Cost added in the current period 6,923,887 2,981,055 3,942,832 Total cost to account for 7,576,850 3,426,500 4,150,350 Cost per equivalent unit: Cost incurred till date - A 3,426,500 4,150,350 Equivalent units of the work done till date -B 979,000 922,300 Cost per equivalent unit of work done till date (A / B ) 3.50 4.50Assignment of costs to units completed and transferred out and units in ending inventory: Cost assignment - Weighted average Completed and transferred out EUP Cost per EUP Total cost Direct materials 790,000 3.50 2,765,000 Conversion 790,000 4.50 3,555,000 6,320,000 Ending work in process Direct materials 189,000 3.50 661,500 Conversion 132,300 4.50 595,350 1,256,850 Total costs accounted for 7,576,850

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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. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost assignment-Weighted average Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion Total costs accounted for Units EUP 74,000 905,000 790,000 189,000 $ 445,445 207,518 2,981,055 3,942,832 Direct Materials Percent Complete 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. (Round "Cost per EUP" to 2 decimal places.) Cost per EUP Conversion Percent Complete 80% $ 652,963 6,923,887 $ 7,576,850 70% Total cost

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. Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost assignment-Weighted average Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion Total costs accounted for Units EUP 74,000 905,000 790,000 189,000 $ 445,445 207,518 2,981,055 3,942,832 Direct Materials Percent Complete 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. (Round "Cost per EUP" to 2 decimal places.) Cost per EUP Conversion Percent Complete 80% $ 652,963 6,923,887 $ 7,576,850 70% Total cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Equivalent Units; Assigning Costs; Cost Reconciliation—Weighted-Average Method Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to 5599,780 in total. The ending work in process inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and…
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Required information [The following information applies to the questions displayed below.] 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. Units Beginning work in process inventory Units started this period 67,000 Direct Materials Percent Complete 100% Conversion Percent Complete 80% 844,000 Units completed and transferred out Ending work in process inventory 715,000 196,000 100% 90% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for $ 296,075 133,710 $ 429,785 1,981,425 2,540,490 4,521,915 $ 4,951,700 3. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory. Note: Round "Cost per EUP" to 2…
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