Question

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 T12-Tables Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 21,000 3,150 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 399,000 246,120 109,200 $754,320

Answer 1

a
1
	T12 Tables
Units to be accounted for	21000
2
	Materials	Conversion Costs
T12 Tables	21000	19740
3
	Materials	Conversion Costs	Total costs
Unit costs T12 Tables	19.00	18.00	37.00
4
Costs accounted for:
Transferred out		660450
Work in process
Materials	59850
Conversion costs	34020	93870
Total costs		754320
b
Cutting Department-Plant 1
Production Cost Report
For the Month Ended July 31, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, July 1	0
Started into production	21000
Total units	21000
Units accounted for
Transferred out	17850	17850	17850
Work in process, July 31	3150	3150	1890
Total units	21000	21000	19740
		Materials	Conversion Costs	Total
Unit costs:
Total costs		399000	355320	754320
Equivalent units		21000	19740
Unit costs		19.00	18.00	37.00
Costs to be accounted for
Work in process, July 1				0
Started into production				754320
Total costs				754320
Cost Reconciliation Schedule
Costs accounted for
Transferred out				660450	=17850*37
Work in process, July 31
Materials			59850		=3150*19
Conversion costs			34020	93870	=1890*18
Total costs				754320