Question

Problem 16-04A Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,292,384 as follows. Work in process, November 1 Materials $78,900 Conversion costs 48.300 $127,200 Materials added 1,598,460 Labor 225,200 Overhead 341,524 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 663,700 units were started into production, and 25,900 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. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials Conversion Costs Equivalent Units Cost per unit LINK TO TEXT LINK TO VIDEO 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 LINK TO TEXT LINK TO VIDEO

Answer 1

I.

	Materials	Conversion Costs
Equivalent units	698,900	673,000
Cost per unit	$2.40	$0.91

Explanations:

Total costs:

	Materials	Conversion
Beginning Work-in process	$78,900	$48,300
Started into production	$1,598,460
(225,200 labor + 341,524 overhead)		$566,724
Total costs	$1,677,360	$615,024

Transferred out units:

	Units
Beginning work-in process	35,200
Started into production	663,700
Total units accounted for	698,900
Less: Ending work-in process	-25,900
Transferred out units	673,000

Equivalent units:

	Materials	Conversion Costs
Equivalent units
Transferred out	673,000	673,000
Work in process, November 30:
25,900 x 100%	25,900
25,900 x 40%		10,360
Total Equivalent units	698,900	673,000

Cost per unit:

	Materials	Conversion Costs	Total
Total costs	$1,677,360	$615,024
÷ Total equivalent units	698,900	683,360
= Unit cost	$2.40	$0.90	$3.30

II.

Cost accounted for:
Transferred out (673,000 x $3.30)		$2,220,900
Work in process, November 30:
Materials (25,900 x $2.40)	$62,160
Conversion Costs (10,360 x 0.90)	$9,324	$71,484
Total Costs		$2,292,384

III.

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	35,200
Started into production	663,700
Total units	698,900
Units accounted for:
Transferred out	673,000	673,000	673,000
Work in process, November 30	25,900	25,900	10,360
Total units	698,900	698,900	683,360
Costs		Materials	Conversion Costs	Total
Unit costs
Total costs		$1,677,360	$615,024	$2,292,384
÷ Equivalent units		698,900	683,360
= Unit costs		$2.40	$0.90	$3.30
Costs to be accounted for:
Work in process, November 1				$127,200
Started into production				$2,165,184
Total costs				$2,292,384
Cost reconciliation Schedule
Cost s accounted for:
Transferred out				$2,220,900
Work in process, November 30
Materials				$62,160
conversion costs				$9,324
Total costs				$2,292,384