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 25,000 20,000 Work in process units, July 31 3,750 625 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $0 $0 Materials 475,000 360,000 Labor 293,000 137,500 Overhead 130,000 131,000    Total $898,000 $628,500

	T12 Tables	C10 Chairs
Units to be accounted for	????	??????

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

	Materials	Coversion Cost
T12 Tables	????	????
C10 Chairs	????	?????

For each plant determine the unit cost of production:

	Materials	Conversion Cost	Total Cost
Unit Cost - T12 Tables	$ ????	$ ????	$ ????
Unit Cost - C10 Chairs	$ ????	$ ????	$ ????

For each plant show the assignment of cost to units transferred out and in the process:

	T 12 Tables
Cost accounted for:
Transferred out		$ ????
Work In Process
Materials	$ ?????
Conversion Cost	?????	??????
Total Cost		$ ??????
	C10 Chairs
Cost accounted for:
Transferred out		$????
Work In Process
Materials	$ ????
Conversion Cost	???????	???????
Total Cost		$ ?????

Prepare the production cost report for Plant 1 for July 2017.

		Thankin Industries Inc.
		Cutting Department - Plant 1
		Production Cost Report
		For Month ended July 31, 2017
		Equivalent Units
Quanities	Physical Units	Materials	Conversion Cost
Units to be accounted for:
Work in Progress, July 1	???????
Started Production	?????
Total Units	??????
Units to be accounted for:
Transferred Out	?????	??????	???????
Work in Progress, July 31	?????	??????	??????
Total Units	?????	???????	???????
Cost		Materials	Conversion Cost	Totals
Unit Cost:
Total Cost		$ ????	$ ????	$ ?????
Equivalent Units		????	????	????
Unit Costs		$ ????	$ ????	$ ???
Cost to be accounted for:
Work in Process, July 1				$ ???
Started into Production				????
Total Cost				$ ???
Cost Reconciliation Schedule
Cost accounted for:
Transferred out				$???
Work in Process, July 31
Materials			$ ??????
Conversion Cost			??????	?????
Total Cost				$ ????

Answer 1

Answer with working notes is given below

T12 Tables C10 Chairs 25,000 20,000 Units to be accounted for equivalent units of production for materials and for conversion costs T12 Tables C10 Chairs Conversion Materials Cost 25,000 23,500 20,000 19,875 Conversion Total Cost Unit Cost - T12 Tables Unit Cost - C10 Chairs Materials $19.00 $18.00 Cost $18.00 $13.51 $37.00 $31.51 T 12 Tables $786,250 Cost accounted for: Transferred out Work In Process Materials Conversion Cost Total Cost $71,250 $40.500 $111,750 $898,000 C10 Chairs $610,495 Cost accounted for: Transferred out Work In Process Materials Conversion Cost Total Cost $11,250 $6,755 $18,005 $628,500 Production cost report for Plant 1 for July 2017 Thankin Industries Inc. Cutting Department - Plant 1 Production Cost Report For Month ended July 31, 2017 Quantities Physical Units Units to be accounted for Work in process July 1 Started production 25,000 25,000 Total units % Completed Equivalent Units Direct % Conversion Material Completed Cost Quantities Total units accounted for Transferred out Work in process July 31 21,250 3,750 25,000 100% 100% 21,250 3,750 25,000 100% 60% 21,250 2,250 23,500 Total Units Direct Material Conversion Cost Total Costs $898,000 Unit Cost Total cost Equivalent units Unit Costs $475,000 25,000 $19.00 $423,000 23,500 $18.00 $37.00 Cost to be accounted for: Work in Process, July 1 Started into Production Total Cost $898,000 $898,000 $786,250 Cost Reconciliation Schedule Cost Accounted for Transferred out Work in Process, July 31 Material Conversion Cost Total Costs $71,250 $40,500 $111,750 $898,000 Thankin Industries Inc. Cutting Department - Plant II Production Cost Report For Month ended July 31, 2017 Quantities Physical Units Units to be accounted for Work in process July 1 Started production 20,000 20,000 Total units Physical Units Equivalent Units Direct % Completed Material Completed Conversion Cost Quantities Total units accounted for Transferred out Work in process July 31 100% 19,375 625 20,000 19,375 625 20,000 100% 80% 100% 19,375 500 19,875 Total Units Direct Material Conversion Cost Total Costs $628,500 Unit Cost Total cost Equivalent units Unit Costs $360,000 20,000 $18.00 $268,500 19,875 $13.51 $31.51 | Cost to be accounted for: Work in Process, July 1 Started into Production Total Cost $628,500 $628,500 $610,495 Cost Reconciliation Schedule Cost Accounted for Transferred out Work in Process, July 31 Material Conversion Cost Total Costs $11,250 $6,755 $18,005 $628,500