Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,286,318 as follows. Work in process, November 1 Materials $78,900 Conversion costs 48,500 $127,400 Materials added 1,593,420 Labor 226,000 Overhead 339,498 Production records show that 34,800 units were in beginning work in process 30% complete as to conversion costs, 662,000 units were started into production, and 24,300 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Answer 1

Units completed and transferred out = 34800+662000-24300=672500

	Material	conversion cost
Units completed and transferred out	672500	672500
Ending WIP	24300	9720 [24300*.40]
Equivalent units	696800	682220
cost	1672320 [78900+1593420]	613998 [48500+226000+339498]
cost per equivalent unit	1672320 / 696800 = $ 2.40	=$ 0.90

cost to be accounted for :

cost of unit transferred out	[2.40+0.90]*672500	2219250
Ending WIP
Material	2.40*24300	58320
conversion cost	0.90*24300*.40 =	8748
Total cost		2286318