Rivera Company has several processing departments. Costs charged to the Assembly

Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2014 totaled $3,871,443 as follows. Production records show that 37,500 units were in beginning work in process 22% complete as to conversion costs, 697,200 units were started into production, and 21,000 units were in ending work in process 60% 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 cost per unit to 2 decimal places, e.g. 1.25.) Determine the assignment of costs to goods transferred out and in process. (Round intermediate calculations to 2 decimal places, e.g. 1.25. Round final answers to 0 decimal places, e.g. 1, 250.) The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Units completed and transfered out = 37500+697200-21000=713700

cost to be accounted for :

Material conversion cost Units completed and trasnfered out 713700 713700 Ending WIP 21000 12600         [21000*.60] Equivalent units 734700 726300 cost 2564103   [70040+2494063] 1307340    [46190+223510+1037640] cost per equivalent unit 2564103/734700 =$ 3.49 =$ 1.80

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