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. Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete Cutting Department T12-Tables 0 21,400 3,210 60 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 406,600 250,808 111,280 $768,688

Answer 1

	Material	Conversion	Total
Cost per equivalnet unit	19.00	18.00	37.00
Cost Reconciliation Report
Costs to be acounted for:
	Total	Material	Conversion
Costs in beginning inventory	-	-	-
Cost added during the year	768,688	406,600	362,088
Total cost to account for	768,688	406,600	362,088
Equivalent Units from below note		21,400	20,116
Cost per equivalnet unit		19.00	18.00
	Actual Units
Caluclation of Physical UNITS:
Units in begining inventory	-
Units started during the period	21,400
Units to be accounted for	21,400
	Actual Units	Equivalent Units
		Material	Conversion
Units Completed and Transferred	18,190	18,190	18,190
Units in ending inventory	3,210	3,210	1,926
Total accounted for	21,400	21,400	20,116