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Mars2501 [29]
3 years ago
6

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throu

ghout 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:
a. Determine the equivalent units of production with respect to direct materials and conversion.
b. Compute both the direct material cost and the conversion cost per equivalent unit.
c. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory.
Business
1 answer:
harina [27]3 years ago
6 0

Answer:

Victory Company

                                                       Materials           Conversion    Total

a. Equivalent units of production:  880,000             754,000

b. Cost per equivalent unit                  $3.00             $4.50

c. Total cost transferred out       $2,100,000        $3,150,000  $5,250,000

Ending Work in Process                  540,000             243,000        783,000

Explanation:

a) Data and Calculations:

Units transferred out = 700,000

Ending Work in process = 180,000

Total equivalent units:

                                           Materials           Conversion

Units transferred out      700,000 (100%)   700,000 (100%)

Ending Work-in-Process  180,000 (100%)     54,000 (30%)

Total equivalent units     880,000               754,000

Cost of production:

                                           Materials           Conversion       Total

Beginning Inventory          $420,000          $139,000       $559,000

Added in November         2,220,000        3,254,000       5,474,000

Total production costs   $2,640,000      $3,393,000    $6,033,000

Cost per equivalent unit:

                                           Materials       Conversion

Total production costs   $2,640,000      $3,393,000

Total equivalent units          880,000           754,000

Cost per equivalent unit         $3.00             $4.50

Cost assigned:

                                               Materials           Conversion       Total

Units transferred out             700,000               700,000

Cost per equivalent unit        $3.00                   $4.50

Total cost transferred out $2,100,000        $3,150,000  $5,250,000

Ending Work in Process        540,000             243,000        783,000

Total cost                          $2,640,000        $3,393,000  $6,033,000

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Answer:

A.Incorrect

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Samantha has a bakery that has been successfully run for over a year, and it’s growing in popularity. If she planned to use her
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Answer:

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In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. It emerged fro
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Reorganization

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3 years ago
Suppose Robina Bank receives a deposit of $53,589 and the reserve requirement is 3%. Answer the questions using this information
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A) 2,679.45
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The bank will keep 5% of the deposit:
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This amount can be used for another.
This makes a hypothetical loop. The borrower can also deposit and creating the chance or another loan and so on. The cycle repeats indefinitely
The maximum amount of new money can be determinate as follow:

53,589 / 0.05 = 1,071,780
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