Question

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		0
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
Total		$718,400

Prepare the production cost report for July 2020

Answer 1

Solution n the Shocan The giuen CCSt datO paiocduction ad table fulewing Cutting cpootme nt pacuc tion cata July T2-tables Wosk n prcess units, Jely UnltsSta ted into 20,000 Pbauction uoak in paocess units, 3,000 ely 31 wozk in paOCeSS pešcent Go camplete -July COSt bata woak in paocess, July Matea ials 380 000 Labor 34,400 oueshead 104 000 To Lal $718,400

Ecyuivalent units: Eauialent units Total Matesjat Coneasion unit comple fion Comple ton Completeol ard ooo 1/000 loo /000 loo tansfeed 3,000 3,000 100 60f Pacess, Tutly 31 Total 20,000 8,800 pe uialent unit: Cost unit Cast peo Nateria $19 - s934,400 +lo4,000 per unit conveasian cost 18,800 338,

CaSt of units completed and taansfeIMd ( 14,000t 37( 9+18)) $629,000 31 Cust of uyk in prucess , July |$57,000 Mateslal 3,000 x1q) $32,100 conucssion cost (1,800 x 18) 89, 400