Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows. Cutting Depart ment Production Data—July Plant 1 T12-Tables Plant 2 C10-Chairs Work in process units. July 1 -0- -0- Units started into production 20,000 18,000 Work in process units, July 31 3,000 500 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $ -0- $ -0- Materials 380,000 288,000 Labor 234,400 110,000 Overhead 104,000 104,800 Total $718,400 $502.800 Instructions (a) For each plant: (1) Compute the physical units of production. (2) Compute equivalent units of production for materials and for conversion costs. (3) Determine the unit costs of production. (4) Show the assignment of costs to units transferred out and in process. (b) Prepare the production cost report for Plant 1 for July 2017.
Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows. Cutting Depart ment Production Data—July Plant 1 T12-Tables Plant 2 C10-Chairs Work in process units. July 1 -0- -0- Units started into production 20,000 18,000 Work in process units, July 31 3,000 500 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $ -0- $ -0- Materials 380,000 288,000 Labor 234,400 110,000 Overhead 104,000 104,800 Total $718,400 $502.800 Instructions (a) For each plant: (1) Compute the physical units of production. (2) Compute equivalent units of production for materials and for conversion costs. (3) Determine the unit costs of production. (4) Show the assignment of costs to units transferred out and in process. (b) Prepare the production cost report for Plant 1 for July 2017.
Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows.
Cutting Depart ment
Production Data—July
Plant 1 T12-Tables
Plant 2
C10-Chairs
Work in process units. July 1
-0-
-0-
Units started into production
20,000
18,000
Work in process units, July 31
3,000
500
Work in process percent complete
60
80
Cost Data—July
Work in process, July 1
$ -0-
$ -0-
Materials
380,000
288,000
Labor
234,400
110,000
Overhead
104,000
104,800
Total
$718,400
$502.800
Instructions
(a) For each plant:
(1) Compute the physical units of production.
(2) Compute equivalent units of production for materials and for conversion costs.
(3) Determine the unit costs of production.
(4) Show the assignment of costs to units transferred out and in process.
(b) Prepare the production cost report for Plant 1 for July 2017.
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