Rivera Company has several processing departments. Costs charged to the Assembly
Department for November 2014 totaled $2,280,000 as follows.
Beginning work in process
Materials 79,000
Conversion costs 48,150 127,150
Materials 1,589,000
Labor 225,920
Overhead 337,930
Production records show that 35,000 units were in beginning work in process 30% complete
as to conversion costs, 660,000 units were started into production, and 25,000 units
were in ending work in process 40% complete as to conversion costs. Materials are entered
at the beginning of each process.
Instructions
(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 Department.