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 800,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 182,000 units that are 70% complete with respect to labor. Beginning inventory had $319,150 of direct materials and $162,295 of direct labor cost. The direct material cost added in November is $2,135,850, and the direct labor cost added is $3,083,605.

Explanation / Answer

1.Statement showing Equivalent units of production(EUP)

2. Statement showing Cost per EUP

3. Statement showing Total Cost

Particulanrs Units %material EUP-Material %labour EUP-labour Finished goods 800000 100% 800000 100% 800000 Closing stock 182000 100% 182000 70% 127400 Total 982000 982000 927400

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