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Problem
A 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 Department
Production Data-July
Plant 1 T12-Tables
Plant 2 C10-Chairs
Work in process units, July 1
0
Units started into production
24,800
19,840
Work in process units, July 31
3,720
620
Work in process percent complete
60
80
Cost Data-July
Work in process, July 1
$0
Materials
471,200
357,120
Labor
290,656
136,400
Overhead
128,960
129,952
Total
$890,816
$623,472
For each plant compute the physical units of production.
For each plant compute equivalent units of production for materials and for conversion costs.
For each plant determine the unit costs of production.
For each plant show the assignment of costs to units transferred out and in process.
Prepare the production cost report for Plant 1 for July 2017.
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