Question

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2017 totaled $ 2,295,954 as follows.

Work in process, November 1
Materials		$ 79,200
Conversion costs		48,100		$ 127,300
Materials added				1,604,394
Labor				225,800
Overhead				338,460

Production records show that  35,500 units were in beginning work in process 30% complete as to conversion costs,  660,200 units were started into production, and  25,500 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.

Determine the assignment of costs to goods transferred out and in process.

Costs accounted for:
Transferred out		$
Work in process, November 30
Materials	$
Conversion costs
Total costs		$

Answer 1

Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	670200	100%	670200	100%	670200
Ending work in process	25500	100%	25500	40%	10200
Equivalent units of production	695700		695700		680400
Cost per equivalent unit of production	Materials	Conversion
Cost of beginning work in process	79200	48100
Costs incurred this period	1604394	564260
Total costs	1683594	612360
÷ Equivalent units of production	695700	680400
Cost per equivalent unit of production	2.42	0.90
Costs accounted for:
Transferred out		2225064	=670200*(2.42+0.9)
Work in process, November 30
Materials	61710		=25500*2.42
Conversion costs	9180	70890	=10200*0.9
Total costs		2295954