Determine the equivalent units of production

Reference no: EM132083161

Question: 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 700,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3,254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from beginning work in process and 640,000 units were started and completed during the period.

Required: 1. Determine the equivalent units of production with respect to (a) direct materials and (b) 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 (a) units completed and transferred out, and (b) ending work in process inventory.

Reference no: EM132083161

Questions Cloud

Describe each company briefly in two sentences : State their fortune 500 ranks for the years 2016, 2015, 2014. with citations/references. Describe each company briefly in two sentences.

Find the company enterprise value : Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2 million Its depreciation and capital expenditures will both be $304,000.

What is the project first cost : It is also known that the IRR for this project is 15 %, and the payback period is 7 years. What is the project's first cost?

Calculate the annual worth of the chipper : Annual revenue from using the chipper was $38,000 per year. Calculate the annual worth of the chipper at 7% interest rate

Determine the equivalent units of production : Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process.

What simple interest rate : What simple interest rate, compounded quarterly, is equivalent to a 8.00% effective interest rate?

Companies net cash flow at annual interest rate : Determine the annual worth over the years 1 through 5 of the companies net cash flow at annual interest rate of 10%.

What equal end-of-the-month payment : What equal end-of-the-month payment for 24 months would be required to repay the loan with interest?

How much will net operating income increase on product : Vice President for Sales and Marketing Sam Totter is trying to plan for the coming year in terms of production needs to meet the sales demand.

User Account

All Pages