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 24,800 3,720 60 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 471,200 290,656 128,960 $890,816

Answer 1

Solution

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

Working

Reconciliation of Units
A	Opening WIP	-
B	Introduced	24,800
C=A+B	TOTAL	24,800
D	Transferred	21,080
E=C-D	Closing WIP	3,720

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	21,080			100%	21,080.0	100%	21,080
Closing WIP	3,720			100%	3,720.0	60%	2,232
Total	24,800			Total	24,800.0	Total	23,312

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 0	$ 0	$ 0
Cost incurred during period		$ 471,200	$ 419,616	$ 890,816
Total Cost to be accounted for		$ 471,200	$ 419,616	$ 890,816
Total Equivalent Units		24,800	23,312
Cost per Equivalent Units		$                 19.00	$                   18.00