Question

		Cutting Department
	Plant 1	Plant 2
Production Data-July	T12-Tables	C10-Chairs
Work in process units, July 1	0	0
Units started into production	20000	18000
Work in process units, July 31	3000	500
Work in process percent complete	60	80
Cost Data-July
Work in process, July 1	0	0
Materials	380000	288000
Labor	234400	110000
Overhead	104000	104800
Total	718400	502800

(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

Answer 1

1		T12-Tables	C10-Chairs
	Units to be accounted for	20,000	18,000
2		Material	Conversion
	T12-Tables	20,000	18,800
	C10-Chairs	18,000	17,900
3		Material	Conversion Cost	Total Costs
	T12-Tables	$380,000	$338,400	$718,400
	C10-Chairs	$288,000	$214,800	$502,800
4		T12-Tables
	Costs accounted for:
	Transferred out		$629,000
	Work in Process
	Materials	$57,000
	Conversion Costs	$32,400	$89,400
	Total costs		$718,400
		C10-Chairs
	Costs accounted for:
	Transferred out		$490,000
	Work in Process
	Materials	$8,000
	Conversion Costs	$4,800	$12,800
	Total costs		$502,800