Victory Company uses weighted-average process costing to account for its product

Question

Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 715,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 210,000 units that are 70% complete with respect to labor. Beginning inventory had $601,250 of direct materials and $150,850 of direct labor cost. The direct material cost added in November is $4,023,750, and the direct labor cost added is $2,866,150. Determine the equivalent units of production with respect to direct labor and direct materials.

Selections given for two (2) question marked (?) areas above are: 1) Beginning goods in process inventory - units, 2) Ending goods in process - units, 3) Total units accounted for, 4) Units completed and transferred out, and 5) Units started this period. Please select two (2) out of these five (5) for the questioned marked areas only and complete columns in addition to showing all work. Thank you,

Equivalent Units of Production (EUP) = Weighted Average Method    Units % Materials EUP - Materials % Labor EUP - Labor ? ? Total Units

Explanation / Answer

Solution:

Equivalent units Material Conversion Transferred out 715,000 100% 715,000 715,000 100% 715,000 Ending Inventory 210,000 100%          210,000 210,000 70% 147000 Equivalent units 925,000 862,000

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