Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added...
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Victory Company uses weighted-average process costing to accountfor its production costs. Direct labor is added evenly throughoutthe process. Direct materials are added at the beginning of theprocess. During November, the company transferred 700,000 units ofproduct to finished goods. At the end of November, the goods inprocess inventory consists of 180,000 units that are 30% completewith respect to labor. Beginning inventory had $420,000 of directmaterials and $139,000 of direct labor cost. The direct materialcost added in November is $2,220,000, and the direct labor costadded is $3,254,000. Beginning work in process consisted of 60,000units that were 100% complete with respect to direct materials and80% complete with respect to conversion. Of the units completed,60,000 were from beginning work in process and 640,000 units werestarted and completed during the period.
- Determine the equivalent units of production with respect to(a) direct materials and (b) conversion
- Compute both the direct material cost and the conversion costper equivalent unit
- Compute the direct material cost and the conversion costassigned to (a) units completed and transferred out and (b) endingwork in process inventory
Victory Company uses weighted-average process costing to accountfor its production costs. Direct labor is added evenly throughoutthe process. Direct materials are added at the beginning of theprocess. During November, the company transferred 700,000 units ofproduct to finished goods. At the end of November, the goods inprocess inventory consists of 180,000 units that are 30% completewith respect to labor. Beginning inventory had $420,000 of directmaterials and $139,000 of direct labor cost. The direct materialcost added in November is $2,220,000, and the direct labor costadded is $3,254,000. Beginning work in process consisted of 60,000units that were 100% complete with respect to direct materials and80% complete with respect to conversion. Of the units completed,60,000 were from beginning work in process and 640,000 units werestarted and completed during the period.
- Determine the equivalent units of production with respect to(a) direct materials and (b) conversion
- Compute both the direct material cost and the conversion costper equivalent unit
- Compute the direct material cost and the conversion costassigned to (a) units completed and transferred out and (b) endingwork in process inventory
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