Question

Problem 3-3A (Video) (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 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 23,200 3,480 60 Cost Data-July Work in process, July 1 $0 Materials Labor 440,800 271,904 120,640 $833,344 Overhead Total

Answer 1

Solution

	Material	Conversion	Total
Unit cost T-12 tables	$ 19.00	$ 18.00	$ 37.00

.

Costs accounted for:
Transferred out		$         729,640
Ending Work in process
Materials	$         66,120
Conversion costs	$         37,584	$         103,704
Total costs		$         833,344

Working

Reconciliation of Units
A	Beginning WIP	-
B	Introduced	23,200
C=A+B	TOTAL	23,200
D	Transferred out	19,720
E=C-D	Ending WIP	3,480

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	19,720			100%	19,720	100%	19,720
Ending WIP	3,480			100%	3,480	60%	2,088
Total	23,200			Total	23,200	Total	21,808

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 440,800	$ 392,544	$ 833,344
Total Cost to be accounted for		$ 440,800	$ 392,544	$ 833,344
Total Equivalent Units		23,200	21,808
Cost per Equivalent Units		$                 19.00	$                   18.00	$             37.00

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 19.00	3,480	$          66,120.00	19,720	$ 374,680
Conversion cost	$ 18.00	2,088	$          37,584.00	19,720	$ 354,960
TOTAL	$ 833,344	TOTAL	$ 103,704	TOTAL	$ 729,640