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, Victory transferred 700,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 180,000 units that are 30% complete with respect to labor. Beginning inventory had $420,000 of direct materials and $139,000 of direct labor cost. The direct labor cost added in November is $2,220,000, and the direct materials cost added is $3,254,000.
1. Determine the equivalent untis of production with respect to (a) direct labor and (b) direct materials
2. Compute both the direct labor cost and the direct materials cost per equilvalent unit.
3. Compute both direct labor cost and direct materials cost assigned to (a) units completes and transferred out, and (b) ending goods in process inventory.