Question

Problem 16-03A 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 Units started into production 20,000 Work in process units, July 31 3,000 Work in process percent complete 60 Cost Data-July Work in process, July 1 $0 Materials 380,000 Labor 234,400 Overhead 104,000 $718,400 Total

Answer 1

a
Costs accounted for:
Transferred out		629000
Work in process
Materials	57000
Conversion costs	32400	89400
Total costs		718400
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	20000
Total units	20000
Units accounted for
Transferred out	17000	17000	17000
Work in process, July 31	3000	3000	1800
Total units	20000	20000	18800
		Materials	Conversion Costs	Total
Unit costs:
Total costs		380000	338400	718400
Equivalent units		20000	18800
Unit costs		19.00	18.00	37.00
Costs to be accounted for
Work in process, July 1				0
Started into production				718400
Total costs				718400
Cost Reconciliation Schedule
Costs accounted for
Transferred out				629000	=17000*37
Work in process, July 31
Materials			57000		=3000*19
Conversion costs			32400	89400	=1800*18
Total costs				718400