Question

Problem 16-3A (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 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 0 Units started into production 24,600 19,680 Work in process units, July 31 3,690 615 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $0 $0 Materials 467,400 354,240 Labor 288,312 135,300 Overhead 127,920 128,904    Total $883,632 $618,444

(a1) Your answer is correct. For each plant compute the physical units of production. T12 Tables C10 Chairs Units to be accounted for 24600 19680

For each plant compute equivalent units of production for materials and for conversion costs.

		Materials		Conversion Costs
T12 Tables		24600		23,124
C10 Chairs		19680		19,557

		Materials		Conversion Costs		Total Costs
Unit costs-T12 Tables		$19		$18		$37
Unit costs-C10 Chairs		$18		$13.51		$31.51

For each plant show the assignment of costs to units transferred out and in process.

T12 Tables
Costs accounted for:
Transferred out		$
Work in process
Materials	$
Conversion costs
Total costs		$883,632

C10 Chairs
Costs accounted for:
Transferred out		$
Work in process
Materials	$
Conversion costs
Total costs		$618,444

Answer 1

For each plant show the assignment of costs to units transferred out and in process.

T12 Tables
Costs accounted for:
Transferred out (20910*37)		$773670
Work in process
Materials (3690*19)	$70110
Conversion costs (2214*18)	39852	109962
Total costs		$883,632

C10 Chairs
Costs accounted for:
Transferred out (19065*31.51)		$600738
Work in process
Materials (615*18)	$11070
Conversion costs (492*13.51)	6646.92	17717
Total costs		$618,444