Rivera Company has several processing departments.

Costs charged to the Assembly Department for November 2017 totaled $2,287,100 as follows :

Work in process, November 1
Materials $78,800
Conversion costs $49,000 $127,800
Materials added 1,596,100
Labor 225,800
Overhead 337,400
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 $ $
(b.) Determine the assignment of costs to goods transferred out and in process.

(c.) Prepare a production cost report for the assembly dept.

B) The assignment of costs to goods transferred out and in process will also include preceding department costs. So the total costs will be preceding department costs plus costs added in the Assembly department. This is calculated as follows.

Materials Conversion

Preceding Department ($127,800-$49,000) given

Costs 78800 78800

Costs Added 1,596,100 $563200

Total Costs $ 1,674,900 $ 642,000

The opening and ending balance of the conversion are given from the preceding department. We subtract them to get the conversion costs. ($127,800-$49,000)= $78800

Equivalent Units Materials Conversion

664500 649440

Unit Costs OF Materials = $ 1,674,900 / 664500 = $2.52

Unit Costs OF Conversion= $ 642,000 /649440= $ 0.99

The assignment of costs to goods transferred=$ 2243363.02

Materials = 639400 *$2.52= 1611288

Conversion= 639400 *0.99= $ 632075.02

The assignment of costs to goods in process $162648

Materials = 25100 *$2.52= 63252

Conversion= 100400 *0.99= $ 99396

(c.) The production cost report for the assembly dept. contains the equivalent units, the costs of the assembly department. the unit cost and production cost of the assembly department which are given below.( as calculated above)

Rivera Company

Production Cost Report

For the Assembly Department

Particulars Units % of Completion Equivalent Units

Materials C.Costs Materials C.Costs

Completed

Units 639400 100 100 639400 639400

Ending WIP 25,100 100 40 25100 10040

Total Equivalent units 664500 649440

Costs Added in the Department

Materials added 1,596,100

Labor +Overhead= 225,800 + 337,400 = $563200

Units Costs For the Assembly Department= Costs Added/ Equivalent Units

Materials= 1,596,100/664500= $ 2.40

Conversion= $563200/649440= $ 0.87

Production Unit Cost for the Assembly Department= $ 2.40 + $ 0.87= $3.27