Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2017 totaled $ 2,295,954 as follows.

Work in process, November 1
Materials		$ 79,200
Conversion costs		48,100		$ 127,300
Materials added				1,604,394
Labor				225,800
Overhead				338,460

Production records show that  35,500 units were in beginning work in process 30% complete as to conversion costs,  660,200 units were started into production, and  25,500 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

Answer 1

• All working forms part of the answer
• Working

Units Reconciliation
Units to account for:
Beginning WIP	35,500
Units started this period	660,200
Total Units to account for	695,700
Total Units accounted for:
Completed & Transferred out	670,200
Ending WIP	25,500
Total Units accounted for	695,700

• Requirement 1: Equivalent Units for Material 7 Conversion cost

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	670,200	100%	670,200	100%	670,200
Units of ENDING WIP	25,500	100%	25,500	40%	10,200
Equivalent Units of Production			695,700		680,400

• Requirement 2: Cost per Equivalent Units

COST per EUP			Material		Conversion
Cost of Beginning WIP			$        79,200.00		$          48,100.00
Cost incurred during the period			$ 1,604,394.00		$        564,260.00
Total Costs		Costs	$ 1,683,594.00	Costs	$        612,360.00
Equivalent units of production		EUP	695,700	EUP	680,400
Cost per EUP			$            2.42		$              0.90

• All Answers

	Materials	Conversion Costs
Equivalent Units	695,700	680,400
Cost per unit	$                     2.42	$                   0.90