Answer:
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 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
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.
