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Question :
Victory Company uses weighted-average procedure costing to account for its production costs. Direct labor is added evenly all through the process. Direct materials are added at the starting of the process. During November, the company transferred 775,000 units of product to finished goods. At the end of November, the goods in procedure inventory consist of 200,000 units that are 90 percent complete with respect to labor. Starting inventory had $570,375 of direct materials and $121,875 of direct labor cost. The direct material cost added in November is $3,817,125, and the direct labor cost added is $2,315,625.
1. Evaluate the equivalent units of production with respect to direct materials and direct labor.
2. Evaluate both the direct labor cost and the direct materials cost per equivalent unit.
3. Determine both direct labor cost and direct materials cost related to units completed and transferred out and ending goods in process inventory.
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