Cavalier Company has several processing departments. Costs charged to the assembly department for November 2012 totaled $2,229,000 as follows:
Work in process, November 1
Materials .......................................$69,000
Conversion costs ................................48,150................ $ 117,150
Materials added ..........................................................1,548,000
Labour .......................................................................225,920
Overhead ....................................................................337,930
Production records show that 35,000 units were in beginning work in process, 30% complete in terms of conversion costs, 700,000 units were started into production, and 25,000 units were in ending work in process, 40% complete in terms of 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.