Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,282,028 as follows.

Work in process, November 1
Materials		$79,300
Conversion costs		48,900		$128,200
Materials added				1,589,900
Labor				225,000
Overhead				338,928

Production records show that 34,700 units were in beginning work in process 30% complete as to conversion costs, 660,800 units were started into production, and 24,300 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.

Determine the assignment of costs to goods transferred out and in process.
Prepare a production cost report for the Assembly Department.

Answer 1

a
1
	Materials	Conversion Costs
Equivalent units	695500	680920
Cost per unit	2.40	0.90
2
Costs accounted for:
Transferred out		2214960
Work in process, November 30
Materials	58320
Conversion costs	8748	67068
Total costs		2282028
b
RIVERA COMPANY
Assembly Department
Production Cost Report
For the Month Ended November 30, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, November 1	34700
Started into production	660800
Total units	695500
Units accounted for
Transferred out	671200	671200	671200
Work in process, November 30	24300	24300	9720
Total units	695500	695500	680920
		Materials	Conversion Costs	Total
Unit costs:
Total costs		1669200	612828	2282028
Equivalent units		695500	680920
Unit costs		2.40	0.90	3.30
Costs to be accounted for
Work in process, November 1				128200
Started into production				2153828
Total costs				2282028
Cost Reconciliation Schedule
Costs accounted for
Transferred out				2214960	=671200*3.30
Work in process, November 30
Materials			58320		=24300*2.40
Conversion costs			8748	67068	=9720*0.90
Total costs				2282028