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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...
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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.
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.
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