Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [The following information applies to the questions displayed below.] 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 770,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 189,000 units that are 50% complete with respect to labor. Beginning inventory had $311,675 of direct materials and $172,900 of direct labor cost. The direct material cost added in November is $2,085,825, and the direct labor cost added is $3,285,100. Determine the equivalent units of production with respect to direct labor and direct materials.

Question

Jaylee Martin

Business

11 March, 22:51

Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 [The following information applies to the questions displayed below.] 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 770,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 189,000 units that are 50% complete with respect to labor. Beginning inventory had $311,675 of direct materials and $172,900 of direct labor cost. The direct material cost added in November is $2,085,825, and the direct labor cost added is $3,285,100. Determine the equivalent units of production with respect to direct labor and direct materials.

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Solomon Avila · Answer 1

Determine the equivalent units of production with respect to direct labor and direct materials

Raw Materials: 275,000

Labor : 171,500

Explanation:

Calculate Total Equivalent Units for Both Raw Materials and Direct Labor Cost for Goods finished and Transfered and Goods in Process Inventory

Raw Materials: Added at Beginning of the Process

Goods Finished and Transfered (100%) = 77,000

Goods in Process Inventory (100%) = 189,000

Total Equivalent Units = 275,000

Labor : Added Evenly to the Process

Goods Finished and Transfered (100%) = 77,000

Goods in Process Inventory (50%) = 94,500

Total Equivalent Units = 171,500