Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,293,806 as follows. $78,800 49,000 Work in process, November 1 Materials Conversion costs Materials added Labor Overhead $127,800 1,599,280 225,800 340,926 Production records show that 34,700 units were in beginning work in process 30% complete as to conversion costs, 664,500 units were started into production, and 25,100 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process. (a) Your 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 699,200 684,140 Cost per unit 0.9

Answer 1

Solution

Costs accounted for:
Transferred out		$      2,224,530
Work in process, November 30
Materials	$         60,240
Conversion costs	$           9,036	$            69,276
Total costs		$      2,293,806

Working

Reconciliation of Units
A	Beginning WIP	34,700
B	Introduced	664,500
C=A+B	TOTAL	699,200
D	Transferred out	674,100
E=C-D	Ending WIP	25,100

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	674,100			100%	674,100	100%	674,100
Ending WIP	25,100			100%	25,100	40%	10,040
Total	699,200			Total	699,200	Total	684,140

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 78,800	$ 49,000	$ 127,800
Cost incurred during period		$ 1,599,280	$ 566,726	$ 2,166,006
Total Cost to be accounted for		$ 1,678,080	$ 615,726	$ 2,293,806
Total Equivalent Units		699,200	684,140
Cost per Equivalent Units		$                   2.40	$                     0.90	$                3.30

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 2.40	25,100	$          60,240.00	674,100	$    1,617,840.00
Conversion cost	$ 0.90	10,040	$             9,036.00	674,100	$        606,690.00
TOTAL	$ 2,293,806	TOTAL	$ 69,276	TOTAL	$ 2,224,530