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 2017 totaled $ 2,303,800 as follows.

Production records show that 34,900 units were in beginning work in process 30% complete as to conversion costs, 659,700 units were started into production, and 24,100 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Work in process, November 1    Materials $ 78,800    Conversion costs 48,100 $ 126,900 Materials added 1,606,800 Labor 225,100 Overhead 345,000 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 Equivalent Units Cost per unit Determine the assignment of costs to goods transferred out and in process. Costs accounted for: Transferred out Work in process, November 30 Materias Corversion costs Total costs

Explanation / Answer

Physcial units Materials Conversion costs Units to be accounted for: Work in Process, November 1 34900 Started into production 659700 Total units 694600 Units accounted for: Transferred out 670500 670500 670500 Work in Process, November 30 24100 24100 9640 Total units 694600 694600 680140 Costs Materials Conversion costs Total Total Costs 1685600 618200 2303800 Equivalent units 694600 680140 Unit costs 2.43 0.91 3.34 Costs to be accounted for: Work in Process, November 1 126900 Started into production 2176900 Total costs 2303800 Cost reconciliation schedule: Costs accounted for: Transferred out 2239470 =670500*3.34 Work in Process, Nov 30 Materials 58563 Conversion costs 8772 67335 Total costs 2306805

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