Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.

Work in process, November 1
Materials		$78,600
Conversion costs		48,700		$127,300
Materials added				1,592,280
Labor				225,100
Overhead				339,064

Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

(a)

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

Save for Later

Attempts: 0 of 3 used

Submit Answer

Using multiple attempts will impact your score.

10% score reduction after attempt 2

(b)

Correct answer iconYour answer is correct.

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

  

Attempts: 1 of 3 used

Using multiple attempts will impact your score.

10% score reduction after attempt 2

(c)

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

a.

Computation of Equivalent units of production (EUP)
	Physical Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Transferred out (35200+661000-25400)	670800	100%	670800	100%	670800
Work in process, Nov 30	25400	100%	25400	40%	10160
Total Equivalent units			696200		680960

Computation of Cost Per unit
	Material	Conversion	Total unit cost
Cost of Beginning Worl in process	$78,600	$48,700
Costs added	$15,92,280	$5,64,164
Total Costs	$16,70,880	$6,12,864	$22,83,744
/Equivalent units of Production	696200	680960
Cost per Equivalent unit of Production	$2.40	$0.90	$3.30

b.

Costs Accounted for
Transferred out (670800*$3.30)		$22,13,640
Work in process, November 30:
Direct Material (25400*$2.40)	60960
Conversion (10160*$0.90)	9144	$70,104
Total Costs		$22,83,744

c.

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	35200
Started in production	661000
Total units	696200
Units accounted for:
Units transferred out	670800	670800	670800
Work in process, November 30	25400	25400	10160
Total units	696200	696200	680960
Costs	Materials	Conversion costs	Total Costs
Unit Costs:
Total Costs	$16,70,880	$6,12,864	$22,83,744
Equivalent Units	696200	680960
Units Costs	$2.40	$0.90	$3.30
Costs to be accounted for:
Work in process, November 1			$1,27,300
Started into production			$21,56,444
Total Costs			$22,83,744
Cost Reconciliation Schedule:
Costs accounted for:
Transferred out			$22,13,640
Work in process inventory, Nov 31
Material		$60,960
Conversion		$9,144	$70,104
Total Costs accounted for			$22,83,744