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3 years ago

Rivera Company has several processing departments.

Business

1 answer:

il63 [147K]3 years ago

7 0

Answer:

Equivalent Units Materials Conversion

664500 649440

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

b)The assignment of costs to goods transferred=$ 2243363.02

The assignment of costs to goods in process $162648

Part C is given below

Explanation:

Rivera Company

Equivalent Units can be calculated by the format given below.

But first we need to find out the completed units which are calculated by subtracting the ending inventory from the units started. 664,500 - 25,100=

639400 units were completed.

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

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

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