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Chakos Industries Inc. manufactures in separate processes furniture for homes. 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
Plant 1
Plant 2
Production Data-July
T12-Tables
C10-Chairs
Work in process units, July 1
-0-
Units started into production
20,000
16,000
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-
Materials
380,000
288,000
Labor
234,400
125,900
Overhead
104,000
96,700
Total
$718,400
$510,600
Instructions
(a) For each plant:
(1) Compare 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 2012.
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