Rivera Company has several processing departments. Costs charged to the Assembly

Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $ 2,262,390 as follows.

Production records show that  34,500 units were in beginning work in process 30% complete as to conversion costs,  655,000 units were started into production, and  24,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

(a)

Determine the equivalent units of production and the unit production costs for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25.)

Materials

Conversion Costs

$

$

Work in process, November 1    Materials $ 78,500    Conversion costs 48,000 $ 126,500 Materials added 1,576,300 Labor 225,000 Overhead 334,590

Explanation / Answer

Units completed and transfered out = Beginning WIP+Started in to production -ending WIP

    = 34500+655000-24000

        = 665500

Equivalent units using weighted average:

Material conversion units completed and transfered out 665500 665500 Ending WIP 24000 9600      [24000*.40] Equivalent unit 689500 675100 Total cost incurred 78500+1576300=1654800 48000+225000+334590=607590 cost per unit 1654800/689500 =$ 2.4 per unit 607590/675100 =$ .90 per unit

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