Process Costing

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,280,000 as follows.

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.

Instruction

1. Determine the equivalent units of production and the unit production costs for the Assembly Department.
2. Determine the assignment of costs to goods transferred out and in process.
3. Prepare a production cost report for the Assembly Department.

Solution