Question

Kimmel, Accounting, 6e Help System Announcements CALCULATOR PRINTER VERSION RACK 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 Plant 1 Plant 2 T12-Tables C10-Chairs Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 22,400 3,360 17.920 560 Cost Data-July Work in process, July 1 Materials Labor Overhead Total 425,600 262,528 116,480 $804,608 322,560 123,200 117,376 $563,136 (ai)

Answer 1

1(b) Production Cost Report for Plant 1 for July, 2017
(i) Calculate equivalent units for materials and conversion costs.
THAKIN INDUSTRIES INC.
Cutting Department- Plant 1
Production Cost Report
For the Month Ended July 31, 2017
UNITS		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for:
Work in process, July 1	0
Started into production	22400
Total units	22400
Units accounted for:
Transferred out	19040	19040	19040
Work in process, July 31 (60% complete)	3360	3360	2016
Total units to be assigned costs	22400	22400	21056
1(b)(ii). costs per equivalent unit.
COSTS	Costs
	Direct Materials	Conversion	Total
Unit Costs
Total Costs	$      425,600	$       379,008	$         804,608
	÷	÷
Equivalent units	22400	21056
Cost per equivalent unit	$19.00	$18.00	$37.00
Costs to be accounted for
Work in process, July 1			$                    0
Started into production			$         804,608
Total costs			$         804,608

Cost Reconciliation Schedule
	Equivalent units	Cost per equivalent unit		Total
Cost accounted for:
Transferred out	19040	$37.00		$704,480
Work in process, July 31 (60% complete)
Materials	3360	$19.00	$63,840
Conversion Costs	2016	$18.00	$36,288	$100,128
Total costs				$804,608

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