Victory Company uses weighted average process costing. The company has two production processes. Conversion cos 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 Completed and transferred out Ending work in process Total units Units 71,000 888,000 750,000 209,000 Units $ 561,015 229,300 750,000 209,900 959,900 3,754,485 4,356,700 equired: Compute equivalent units of production for both direct materials and conversion. Direct Materials Conversion Percent Percent Complete 100% Complete 80% Percent Complete 100% 100% 100% $ 790,315 Equivalent Units of Production (EUP) - Weighted Average Method Direct Materials 8,111,185 $ 8,901,500 EUP 80% 750,000 209,900 959,900 Conversion Percent Complete 100% 50% EUP 750,000
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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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
Completed and transferred out
Ending work in process
Total units
Units
Units
71,000
888,000
750,000
209,000
750,000
209,900
959,900
$ 561,015
229,300
3,754,485
4,356,700
Direct
Materials
Required:
1. Compute equivalent units of production for both direct materials and conversion.
Porcent
Complete
Conversion
Percent
Percent
Complete Complete
100%
80%
100%
100%
100%
$ 790,315
Equivalent Units of Production (EUP) - Weighted Average Method
Direct Materials
8,111,185
$ 8,901,500
EUP
80%
750,000
209,900
959,900
Conversion.
Percent
Complete
100%
50%
EUP
750,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9288abc4-6622-41d0-ba5f-98e8e8d58b64%2F67d5336f-59fd-41d7-a218-5e7cc54ebc78%2Fqzgs2ni_processed.jpeg&w=3840&q=75)
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