Question

Thakin Industries Inc, manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incur 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 60 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 (1)

Answer 1

T12 TABLES
Cost accounted for:
Transferred out (22,400-3,360) 19,040*$37		$704,480
Work in process:
Materials (3,360*$19)	$63,840
Conversion costs (3,360*60%*$18)	36,288	100,128
Total costs		$804,608
C10 CHAIRS
Transferred out (17,920-560) 17,360*$31.51		$547,013
Work in process:
Materials (560*$18)	$10,080
Conversion costs (560*80%*$13.51)	6,052	16,132
Total costs		$563,145