Assume Victory uses the average-cost method to account for its process costing system.

VICTORY COMPANY

For the month of November:

Number of units transferred to finished goods....... 700,000

Number of units 30% complete as to labor at

end of period..................... 180,000

Beginning inventory:

Direct materials....................$420,000

Direct labor.....................$139,000

Direct materials cost for period............. $2,220,000

Direct labor cost for period................ $3,254,000

Check figure:

(2) Direct labor cost per equivalent unit........... $4.50

(3b) ........................ $783,000

Instructions:

Assume Victory uses the average-cost method to account for its process costing system.

1. Prepare the company's process cost summary using average cost.

2. Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.