Answer:
<u>Equivalent Units</u> 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
<u>Ending WIP 25,100 100 40 25100 10040</u>
<u>Total Equivalent units 664500 649440</u>
<u />
<u>Costs Added in the Department</u>
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
<u>Costs Added </u><u> 1,596,100 $563200 </u>
<u>Total Costs $ 1,674,900 $ 642,000</u>
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
<u>Equivalent Units</u> 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)
<u><em>Rivera Company</em></u>
<u><em>Production Cost Report </em></u>
<u><em>For the Assembly Department</em></u>
Particulars Units % of Completion Equivalent Units
Materials C.Costs Materials C.Costs
Completed
Units 639400 100 100 639400 639400
<u>Ending WIP 25,100 100 40 25100 10040</u>
<u>Total Equivalent units 664500 649440</u>
<u />
<u>Costs Added in the Department</u>
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
