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. Required:a. Determine the equivalent units of production and the unit production costs for the Assembly Department. b. Determine the assignment of costs to goods transferred out and in process. c. Prepare a production cost report for the assembly dept.

Rivera Company

a1) Equivalent Unit

                                   Materials           Conversion

Started & completed     673,000            673,000

WIP                                   25,900               10,360

Equivalent Units            698,900             683,360

a2) Cost per equivalent unit:

                                     Materials           Conversion   Total Costs

Costs added                $1,598,460          $566,724

Beginning WIP                    78,900               48,300

Total costs                   $1,677,360           $615,024

Equivalent Units              698,900             683,360

Costs per equivalent        $2.4                   $0.90               $3.30

Costs attributable:

                                          Materials           Conversion    Total Costs

Started and completed $1,615,200          $605,700      $2,220,900

WIP, November 30              62,160                  9,324               71,484

Total costs                    $1,677,360            $615,024      $2,292,384

c. RIVERA COMPANY

Assembly Department

Production Cost Report

For the month ended November 30,2020

                                                                     Equivalent units  

            Quantities               Physical Unit    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, Nov. 30    25,900             25,900     10,360  

Total units                          698,900   698,900  683,360  

Costs                   MaterialsConversion  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

Explanation:

a) Data and Calculations:

Total Assembly Department costs = $2,292,384

WIP, November 1:

Materials             $78,900

Conversion costs 48,300

Total                  $127,200

Materials added 1,598,460

Labor                    225,200

Overhead              341,524

Units in production:

WIP, November 1 = 35,200

Completion 30% Conversion

Started = 663,700

Ending WIP 25,900

Completion  = 40% conversion

b) The equivalent unit of production is the percentage of completion that has been achieved for each stage of the process.  It is calculated by applying the percent of work done on the units of production.  This is then used to determine the costs per equivalent unit and the costs to be attributable to the ending work in process and the units that have been completed.

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