Victory Company uses weighted-average process costing to account for its product
ID: 2483741 • Letter: V
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 790,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 183,000 units that are 50% complete with respect to labor. Beginning inventory had $442,715 of direct materials and $220,375 of direct labor cost. The direct material cost added in November is $2,962,785, and the direct labor cost added is $4,187,125.
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 790,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 183,000 units that are 50% complete with respect to labor. Beginning inventory had $442,715 of direct materials and $220,375 of direct labor cost. The direct material cost added in November is $2,962,785, and the direct labor cost added is $4,187,125.
Determine the equivalent units of production with respect to direct labor and direct materials.Explanation / Answer
Perticulars Units % of Material EUP Material % Labour EUP Labour Opening Balance Transferred to Finished Goods 790000 100% 790000 100% 790000 Closing WIP 183000 100% 183000 50% 91500 Total Units 973000 881500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.