Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $ 2,262,390 as follows.

Work in process, November 1
Materials		$ 78,500
Conversion costs		48,000		$ 126,500
Materials added				1,576,300
Labor				225,000
Overhead				334,590

Production records show that  34,500 units were in beginning work in process 30% complete as to conversion costs,  655,000 units were started into production, and  24,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

(a)

Correct answer iconYour answer is correct.

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		$		$

Attempts: 1 of 7 used

(b)

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		$

Answer 1

• All working forms part of the answer
• Requirement ‘a’

Units Reconciliation
Units to account for:
Beginning WIP	34,500
Units started this period	655,000
Total Units to account for	$       689,500.00
Total Units accounted for:
Completed & Transferred out	665,500
Ending WIP	24,000
Total Units accounted for	$       689,500.00

--- Calculation of Equivalent Units

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	665,500	100%	665,500	100%	665,500
Units of ENDING WIP	24,000	100%	24,000	40%	9,600
Equivalent Units of Production			689,500		675,100

                ---Calculation of cost per Equivalent Units

COST per EUP			Material		Conversion
Cost of Beginning WIP			$        78,500.00		$          48,000.00
Cost incurred during the period			$ 1,576,300.00		$        559,590.00
Total Costs		Costs	$ 1,654,800.00	Costs	$        607,590.00
Equivalent units of production		EUP	689,500	EUP	675,100
Cost per EUP			$                   2.40		$                     0.90

• Requirement ‘b’ Working

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	665,500	$       2.40	$ 1,597,200.00
- Conversion	665,500	$       0.90	$      598,950.00
Total Cost transferred Out				$        2,196,150.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	24,000	$       2.40	$        57,600.00
- Conversion	9,600	$       0.90	$          8,640.00
Total cost of ending WIP				$              66,240.00
Total costs accounted for					$    2,262,390.00

• All Answers, as asked, based on above:

		Materials		Conversion Costs
Equivalent Units		689,500		675,100
Cost per unit		$ 2.40		$ 0.90

.

Costs accounted for:
Transferred out		$ 2,196,150
Work in process, November 30
Materials	$ 57,600
Conversion costs	$ 8,640	$ 66,240
Total costs		$ 2,262,390