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
