[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. Direct
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.
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[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
Cost per equivalent unit of production
Units
Total costs
+ Equivalent units of production (from part 1)
Cost per equivalent unit of production
72,000
882,000
775,000
179,000
$ 558,090
84,660
3,734,910
1,608,540
Direct
Materials
Percent
Complete
100%
100%
2. Compute cost per equivalent unit of production for both direct
materials and conversion.
Costs
EUP
(
$ 642,7!
5,343,4!
$ 5,986,20
Materia](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb21bb1c-9316-42c5-9a95-8aee84d7e301%2Fd01371cd-8abe-40bc-a466-90aaaf48410d%2Fbqp01lp_processed.jpeg&w=3840&q=75)
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