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Business, 12.07.2021 21:10 lizerator01
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 process. During November, the company transferred 795,000 units of product to finished goods. At the end of November, the work in process inventory consists of 206,000 units that are 80% complete with respect to conversion. Beginning inventory had $650,650 of direct materials and $143,970 of conversion cost. The direct material cost added in November is $4,354,350, and the conversion cost added is $2,735,430. Beginning work in process consisted of 65,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 65,000 were from beginning work in process and 730,000 units were started and completed during the period. Required: 1. Determine the equivalent units of production with respect to direct materials and conversion.2. Compute both the direct material cost and the conversion cost per equivalent unit. 3. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory.
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Victory Company uses weighted-average process costing to account for its production costs. Conversio...
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