Question

Thakin Industries Inc. manufactures dorm furniture in separate processes Production and cost data for the first process in making two products in tw Cutting Department Plant 1 Plant 2 Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete T12-Tables c10-Chairs 0 17,500 700 80 G. 19,500 3,100 60 Cost Data-July Work in process, July1 s0 390,000 234, 700 112,240 $0 Materials 280,000 113,000 112,680 Labor Overhead Total 5736 940 3505 680 For aarh niant romnute the nhysica tits ot nodittino DOLL CIICOo $736,940 Total For each plant compute the physical units of production. T12 Tables C10 Chairs Units to be accounted for For each plant compute equivalent units of production for m Materials Conversion Costs T12 Tables C10 Chairs For each piant determine the unit costs of production. Materials Conversion Costs T Thakin Industries Inc. manufactures dorm furniture in separate processes Production and cost data for the first process in making two products in tw Cutting Department Plant 1 Plant 2 Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete T12-Tables c10-Chairs 0 17,500 700 80 G. 19,500 3,100 60 Cost Data-July Work in process, July1 s0 390,000 234, 700 112,240 $0 Materials 280,000 113,000 112,680 Labor Overhead Total 5736 940 3505 680 For aarh niant romnute the nhysica tits ot nodittino DOLL CIICOo $736,940 Total For each plant compute the physical units of production. T12 Tables C10 Chairs Units to be accounted for For each plant compute equivalent units of production for m Materials Conversion Costs T12 Tables C10 Chairs For each piant determine the unit costs of production. Materials Conversion Costs T C10 Chairs Costs accounted for: Transferred out Work in process Materials Conversion costs Total costs Prepare the production cost report for Plant 1 for July 201 IHAKIN INDUSTRIES I Cubting Department Pla Production Cost Report For the Month Ended July 31, Equi Physical Units Quantities Materials Prepare the production cost report f Plant I for July 2017 THAKIN INDUSTRIES INC. Cutting Department Plant 1 Production Cost Report For the Month Ended July 31, 2017 Equivalent Units Physical Units Conversion Costs Quantities Materials Units to be accounted for Work in process, July 1 Started into production Total units Units accounted for Transferred out Work in process, July 31 Total units Conversion Costs Materials Total Costs Unit costs Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, July 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs Click if you would like to Show Work for this question: Open Show Work

Answer 1

	PLANT 1
	T-12 Tables
	Summery of Physical units and equivalent units calculation
	Units to be accounted for	Phycal units
	Units in the beginning WIP inventory	0
	Units started during the period	19500
	Total units to be accounted for	19500
			Equivalent units
	Units accounted for	Physical unit	Material	Labor	Overhead
	Units completed and transferred out	16400	16400	16400	16400
	Units in ending WIP inventory	3100	3100	1860	1860	(60%*3100)
	Total units accounted for	19500	19500	18260	18260
	Summery of costs to be accounted for
	Costs to be accounted for	Materials	Labor	Overhead	Total
	Cost in beginning WIP	0	0	0	0
	Costs incurred during the period	390000	234700	112240	736940
	Total costs to be accounted for	390000	234700	112240	736940
	Calculation of costs per equivalent unit
		Materials	Labor	Overhead
	Total costs to be accounted for(a)	390000	234700	112240
	Total equivalent units accounted for(b)	19500	18260	18260
	Cost per equivalent unit(a)/(b)	20.00	12.85	6.15
	Assign costs to units transferred out and in Ending WIP
		Materials	Labor	Overhead	Total
	Costs assigned to units transferred out	328000	210793	100807	639600
	Cost assigned to ending WIP	62000	23907	11433	97340
					736940
	PLANT 2
	C-10 Chairs
	Summery of Physical units and equivalent units calculation
	Units to be accounted for	Phycal units
	Units in the beginning WIP inventory	0
	Units started during the period	17500
	Total units to be accounted for	17500
			Equivalent units
	Units accounted for	Physical unit	Material	Labor	Overhead
	Units completed and transferred out	16800	16800	16800	16800
	Units in ending WIP inventory	700	700	560	560	(80%*700)
	Total units accounted for	17500	17500	17360	17360
	Summery of costs to be accounted for
	Costs to be accounted for	Materials	Labor	Overhead	Total
	Cost in beginning WIP	0	0	0	0
	Costs incurred during the period	280000	113000	112680	505680
	Total costs to be accounted for	280000	113000	112680	505680
	Calculation of costs per equivalent unit
		Materials	Labor	Overhead
	Total costs to be accounted for(a)	280000	113000	112680
	Total equivalent units accounted for(b)	17500	17360	17360
	Cost per equivalent unit(a)/(b)	16.00	6.51	6.49
	Assign costs to units transferred out and in Ending WIP
		Materials	Labor	Overhead	Total
	Costs assigned to units transferred out	268800	109355	109045	487200
	Cost assigned to ending WIP	11200	3645	3635	18480
					505680
		T12 Tables	C10 Chairs
	Units to be accounted for	19500	17500
	Equivalent Units of Production	Materials	Conversion Costs
	T12 Tables	19500	18260
	C10 Chairs	17500	17360
	UNIT COST OF PRODUCTION
		Material	Conversion cost	Total Cost	Labor	Overhead	Conversion
	Unit Cost -T12-Tables	20.00	19.00	39.00	12.85	6.15	19.00
	Unit Cost -C10-Chairs	16.00	13.00	29.00	6.51	6.49	13.00