Required information [The following information applies to the questions displayed below] Victory Company uses weighted average process costing. The company has two production processe is added evenly throughout each process. Direct materials are added at the beginning of the first proce information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Units 78,000 831,000 710,000 199,000 $ 354,510 212,325 2,372,490 4,034,175 Direct Materials Percent Complete 100% 100% Conversion Percent Complete -80% $ 566,835 6,406,665 $ 6,973,500 70% 2. Compute cost per equivalent unit of production for both direct materials and conversion.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Required information
[The following information applies to the questions displayed below.]
Victory Company uses weighted average process costing. The company has two production processes. Conversion cost
is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional
information for the first process follows
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials.
Conversion
Total costs to account for
Units
Cost per equivalent unit of production
Costs added this period
Costs of beginning work in process
Total costs
+Equivalent units of production (from part 1)
Cost per equivalent unit of production
78,000
831,000
710,000
199,000
$ 354,510
212,325
2,372,490
4,034,175
Direct
Materials
Percent
Complete
100%
30
100%
Conversion
Percent
Complete
-80%
Costs
EUP
$ 566,835
2. Compute cost per equivalent unit of production for both direct materials and conversion.
6,406,665
$ 6,973,500
Answer is not complete.
70%
Materials
$ 2,372,490
354,510
$ 2,727,000
0
Costs
EUP
Conversion
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