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 Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 76,000 100% 80% Units started this period 905,000 Units completed and transferred out 800,000 Ending work in process inventory 181,000 100% 50% Beginning work in process inventory Direct materials $ 510,120 Conversion 89,050 $ 599,170 Costs added this period Direct materials 3,413,880 Conversion 1,691,950 5,105,830 Total costs to account for $ 5,705,000 Required: 1. Compute equivalent units of production for both direct materials and conversion.
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 Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 76,000 100% 80% Units started this period 905,000 Units completed and transferred out 800,000 Ending work in process inventory 181,000 100% 50% Beginning work in process inventory Direct materials $ 510,120 Conversion 89,050 $ 599,170 Costs added this period Direct materials 3,413,880 Conversion 1,691,950 5,105,830 Total costs to account for $ 5,705,000 Required: 1. Compute equivalent units of production for both direct materials and conversion.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 Direct Materials Conversion
Percent Complete Percent Complete
Beginning work in process inventory 76,000 100% 80%
Units started this period 905,000
Units completed and transferred out 800,000
Ending work in process inventory 181,000 100% 50%
Beginning work in process inventory
Direct materials $ 510,120
Conversion 89,050 $ 599,170
Costs added this period
Direct materials 3,413,880
Conversion 1,691,950 5,105,830
Total costs to account for $ 5,705,000
Required:
1. Compute equivalent units of production for both direct materials and conversion.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education