Question

FULL SCREEN PRINTER VERSION BACK NEXT Problem 17-3A 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 Production Data-July T12-Tables C10-Chairs Work in process units, July 1 0 0 Units started into production 20,600 16,480 Work in process units, July 31 3,090 515 Work in process percent complete 60 80 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 391,400 241,432 107,120 $739,952 $0 296,640 113,300 107,944 $517,884 Your answer is correct. For each plant compute the physical units of production T12 Tables Units to be accounted for 20,600 C10 Chairs 16,480 Version 4.242 nicy 2000-2020.ohn Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. ctv

Answer 1

	Materials	Conversion costs
T12 Tables	20600	19364
C10 Chairs	16480	16377

Explanations :-

Materials
	T12 Tables	C10 Chairs
	(20600 * 100%) = 20600	(16480 * 100%) = 16480
Conversion costs
	T12 Tables	C10 Chairs
Units started & completed	17510	15965
Ending WIP	1854	412
	19364	16377

	Materials	Conversion costs	Total costs
Unit costs-T12 Tables	$                                19.00	$                                18.00	$                    37.00
Unit costs-C10 Chairs	$                                18.00	$                                13.51	$                    31.51

Explanations:-

Materials
	T12 Tables	C10 Chairs
Cost incurred	$391,400	$296,640
÷ Equivalent units	20600	16480
	$                                19.00	$                                18.00
Conversion costs
	T12 Tables	C10 Chairs
Cost incurred	$348,552	$221,244
÷ Equivalent units	19364	16377
	$                                18.00	$                                13.51

T12 Tables
Cost accounted for:
Transferred out		$647,870
Work in process
Materials	$58,710
Conversion costs	$33,372	$92,082
Total costs		$                           739,952
C10 Chairs
Cost accounted for:
Transferred out		$503,048
Work in process
Materials	$9,270
Conversion costs	$5,566	$14,836
Total costs		$                           517,884

		Equivalent units
Quantities	Physical units	Materials	Conversion costs
Units to be accounted for
Work in process July 1
Started into production	20600
Total units	20600
Units accounted for
Transferred out	17510	17510	17510
Work in process July 31	3090	3090	1854
Total units	20600	20600	19364
Costs		Materials	Conversion costs	Totals
Unit costs
Total costs		$391,400	$348,552	$739,952
Equivalent units		20600	19364
Unit costs		$19	$18	$37
Cost to be accounted for
Work in process July 1
Started into production				$739,952
Total costs				$739,952
Cost Reconciliation Schedule
Costs accounted for
Transferred out				$647,870
Work in process July 31
Materials			$58,710
Conversion costs			$33,372	$92,082
Total costs				$        739,952