Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,282,148 as follows.

Work in process, November 1
Materials		$79,300
Conversion costs		48,600		$127,900
Materials added				1,590,380
Labor				226,000
Overhead				337,868

Production records show that 34,600 units were in beginning work in process 30% complete as to conversion costs, 661,100 units were started into production, and 25,300 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

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		$		$

eTextbook and Media

  

  

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		$

eTextbook and Media

  

  

Prepare a production cost report for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

RIVERA COMPANY Assembly Department Production Cost Report For the Month Ended November 30, 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, November 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, November 30
Total units
Costs				Materials		Conversion Costs		Total
Unit costs
Total Costs				$		$		$
Equivalent units
Unit costs				$		$		$
Costs to be accounted for
Work in process, November 1								$
Started into production
Total costs								$
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$
Work in process, November 30
Materials						$
Conversion costs
Total costs								$

Answer 1

Solution:

Computation of Equivalent units of production (EUP)
	Physical Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Transferred out (34600+661100-25300)	670400	100%	670400	100%	670400
Work in process, Nov 30	25300	100%	25300	40%	10120
Total Equivalent units			695700		680520
Computation of Cost Per unit
	Material	Conversion	Total unit cost
Cost of Beginning Worl in process	$79,300	$48,600
Costs added	$15,90,380	$5,63,868
Total Costs	$16,69,680	$6,12,468	$22,82,148
/Equivalent units of Production	695700	680520
Cost per Equivalent unit of Production	$2.40	$0.90	$3.30
Costs Accounted for
Transferred out (670400*$3.30)		$22,12,320
Work in process, November 30:
Direct Material (25300*$2.40)	60720
Conversion (10120*$0.90)	9108	$69,828
Total Costs		$22,82,148

Rivera Coompany
Assembly Department
Production cost report
For the month ended November 30, 2020
	Physical units	Equivalent units
Quantities:	Materials	Conversion costs
Units to be Account for:
Work in process, November 1	34600
Started in production	661100
Total units	695700
Units accounted for:
Units transferred out	670400	670400	670400
Work in process, November 30	25300	25300	10120
Total units	695700	695700	680520
Costs	Materials	Conversion costs	Total Costs
Unit Costs:
Total Costs	$16,69,680	$6,12,468	$22,82,148
Equivalent Units	695700	680520
Units Costs	$2.40	$0.90	$3.30
Costs to be accounted for:
Work in process, November 1			$1,27,900
Started into production			$21,54,248
Total Costs			$22,82,148
Cost Reconciliation Schedule:
Costs accounted for:
Transferred out			$22,12,320
Work in process inventory, March 31
Material		$60,720
Conversion		$9,108	$69,828
Total Costs accounted for			$22,82,148