Chapter 3, Problem 3.3AP

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.