Problem 16-4A (Part Level Submission) Rivera Company has several processing depa
ID: 2423553 • Letter: P
Question
Problem 16-4A (Part Level Submission) Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2014 totaled $2,359,918 as follows. Work in process, November 1 $78,760 48,100 Materials Conversion costs Materials added Labor Overhead $126,860 1,597,568 225,100 410,390 % com plete as to conversion 800 units were ne ndin in process. 0 mplete a to conversion costs Materials reentered Production records show hat 4,870 units e e in eginning wo the beginning of each process in process ost units were started int product on anExplanation / Answer
Calculation of equivalent Units Particulars Units Eq. Units Material Conversion Cost WIP In the beginning in units 34870 Started in Processing in Units 663600 698470 Completed during the Month 673670 673670 673670 WIP In the end 24800 24800 9920 698470 698470 683590 Calculation of Costs per Equivalent Unit Material Conversion Cost Total WIP In the Beginning 78,760 48,100 126,860 Cost Incurred during November - Material 1,597,568 1,597,568 Conversion Cost Labor - 225,100 225,100 Overhead - 410,390 410,390 Total Costs 1,676,328 683,590 2,359,918 Equivalent Units 698470 683590 Cost per Equivalent Unit 2.40 1.00 Calculation of Costs of Goods Transferred & WIP in End Material Conversion Cost Total Transferred Out Equivalent Units 673670 673670 Cost per Equivalent Unit 2.40 1.00 Cost of Goods Transferred out 1,616,808 673,670 2,290,478 WIP, Nov. 30 Equivalent Units 24800 9920 Cost per Equivalent Unit 2.4 1 Cost of WIP 59520 9920 69,440 Total Costs 2,359,918