Rivera Company has several processing departments. Costs charged to the Assembly
ID: 2335519 • Letter: R
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)
Correct answer iconYour answer is correct.
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
$
$
Attempts: 1 of 7 used
(b)
Determine the assignment of costs to goods transferred out and in process.
Costs accounted for:
Transferred out
$
Work in process, November 30
Materials
$
Conversion costs
Total costs
$
Work in process, November 1 Materials $ 78,500 Conversion costs 48,000 $ 126,500 Materials added 1,576,300 Labor 225,000 Overhead 334,590Explanation / Answer
Answer
Units Reconciliation
Units to account for:
Beginning WIP
34,500
Units started this period
655,000
Total Units to account for
$ 689,500.00
Total Units accounted for:
Completed & Transferred out
665,500
Ending WIP
24,000
Total Units accounted for
$ 689,500.00
--- Calculation of Equivalent Units
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
665,500
100%
665,500
100%
665,500
Units of ENDING WIP
24,000
100%
24,000
40%
9,600
Equivalent Units of Production
689,500
675,100
---Calculation of cost per Equivalent Units
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 78,500.00
$ 48,000.00
Cost incurred during the period
$ 1,576,300.00
$ 559,590.00
Total Costs
Costs
$ 1,654,800.00
Costs
$ 607,590.00
Equivalent units of production
EUP
689,500
EUP
675,100
Cost per EUP
$ 2.40
$ 0.90
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
665,500
$ 2.40
$ 1,597,200.00
- Conversion
665,500
$ 0.90
$ 598,950.00
Total Cost transferred Out
$ 2,196,150.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
24,000
$ 2.40
$ 57,600.00
- Conversion
9,600
$ 0.90
$ 8,640.00
Total cost of ending WIP
$ 66,240.00
Total costs accounted for
$ 2,262,390.00
Materials
Conversion Costs
Equivalent Units
689,500
675,100
Cost per unit
$ 2.40
$ 0.90
.
Costs accounted for:
Transferred out
$ 2,196,150
Work in process, November 30
Materials
$ 57,600
Conversion costs
$ 8,640
$ 66,240
Total costs
$ 2,262,390
Units Reconciliation
Units to account for:
Beginning WIP
34,500
Units started this period
655,000
Total Units to account for
$ 689,500.00
Total Units accounted for:
Completed & Transferred out
665,500
Ending WIP
24,000
Total Units accounted for
$ 689,500.00
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