Question

Problem 3-3A (Video) (Part Level Submission)

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 a product are as follows.

		Cutting Department
Production Data—July		T12-Tables
Work in process units, July 1		0
Units started into production		24,000
Work in process units, July 31		3,600
Work in process percent complete		60
Cost Data—July
Work in process, July 1		$0
Materials		456,000
Labor		281,280
Overhead		124,800
Total		$862,080

Prepare the production cost report for July 2020.

THAKIN INDUSTRIES INC. Cutting Department—Plant 1 Production Cost Report For the Month Ended July 31, 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, July 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, July 31
Total units
Costs				Materials		Conversion Costs		Total
Unit costs
Total Costs				$		$		$
Equivalent units
Unit costs				$		$		$
Costs to be accounted for
Work in process, July 1								$
Started into production
Total costs								$
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$
Work in process, July 31
Materials						$
Conversion costs
Total costs								$

Answer 1

THAKIN INDUSTRIES INC. Cutting Department-Plant 1 Production Cost Report For the Month Ended July 31, 2020 Equivalent Units Physical Units Materials Conversion Costs Quantities Units to be accounted for Work in process, July 1 Started into production Total units 24,000 24,000 Units accounted for Transferred out Work in process, July 31 Total units 204001 3600 240001 20400 3600 240001 204001 2160 22560 Conversion Costs Costs Materials Total Unit costs $ $ Total Costs Equivalent units 4,56,000.00 240001 4,06,080.00 22560 $ 8,62,080.00 Unit costs Costs to be accounted for Work in process, July 1 Started into production 862080 Total costs 862080 Cost Reconciliation Schedule Costs accounted for $ 7,54,800.00 Transferred out 20400*37 Work in process, July 31 Materials 3600*19 Conversion costs 2160*18 $ $ 68,400.00 38,880.00 1,07,280.00 Total costs $ 8,62,080.00