Problem:
Cavalier Company has several processing departments. Cost charge to assembly department for Nov. 2012 totaled $2,229,000 as follows:
Work-in process Nov 1
Materials........................................................69,000
Conversion cost...........................................48,150_______________________117,150
Materials added.................................................................................................................1, 548,000
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, 700,000 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.
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