Question

*Problem 3-4A (Video) (Part Level Submission) 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) 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

Answer 1

Prepare the statement for equivalent units of production as follows: A B C D E F Statement of Equivalent Units(Weighted average) Material Conversion cost Equivalent Equivalent Units % units units 4. Transferred out 674100 100% 674100 100% 674100 5 Ending WIP 25100 100% 25100 40% 10040 6 Total 699200 699200 684140 Prepare the above-mentioned table with excel formulae as follows: 1 B C D E F Statement of Equivalent Units(Weighted average) Material Conversion cost Units % Equivalent units % Equivalent units 4 Transferred out 674100 5 Ending WIP 25100 6 Total =SUM(B4:B5) i -B4*C4 =B5*C5 =SUM(D4:D5) 1 E4%B4 0.4 =B5*E5 =SUM(F4:F5) Compute cost per unit as follows: D 1 Cost per Equivalent Units (Weighted average) 2 Cost: Material Conversion cost 3 Beginning WIP Inventory Cost $78,800 $49,000 4 Cost incurred during period $1,599.280 $566,726 5 Total Cost to be accounted for $1,678,080 $615,726 6 Total Equivalent Units 699200 684140 7 Cost per Equivalent Units $2.40 $0.90 TOTAL $127.800 $2,166,006 $2,293,806 $3.30 Prepare the above-mentioned table with excel formulae as follows: D А B Cost per Equivalent Units (Weighted average) 2 Cost: Material Conversion cost 3 Beginning WIP Inventory Cost 78800 49000 4 Cost incurred during period 1599280 5 66726 5 Total Cost to be accounted for =SUM(B3:B4) SUM(C3:C4) 6 Total Equivalent Units 699200 6 84140 7 Cost per Equivalent Units =B5/B6 =C5/C6 TOTAL =SUM(B3:03) SUM(B4:04) ESUM(B5:C5) =SUM(B7:07)

Note: As no method is mentioned, calculations are done using weighted-average method.