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 T12-Tables 0 Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 24,000 3,600 60 Cost Data-July Work in process, July 1 Materials Labor $0 456,000 281,280 124,800 $862,080 Overhead Total

Answer 1

al) T12 Tables Units to be accounted for 24,000 a2) Materials Conversion costs T12 Tables 24000 22560 3) Materials Conversion costs Total costs Unit costs-T12 Tables $ 19$ 18$ 37 4) T12 Tables: Costs accounted for: Transferred out $ 754,800 Work in process Materials $ 68,400 Conversion costs $ 38,880 $ 107,280 Total costs $ 862,080 $ Working Note:

A B с D E 1 Cutting Department-Plant 1 2 Production Cost Report 3 For the Monthe Ended July 31, 2020 4 Equivalent Units 5 Quantities Physical Units Materials Conversion Costs 6 Units to be accounted for 7 Work in process, July 1 8 Started into production 24,000 9 Total units 24,000 10 11 Units accounted for 12 Transferred out 20,400 20,400 20,400 13 Work in process, July 31 3,600 3,600 2,160 14 Total units 24,000 24,000 22,560 15 Costs Materials Conversion Costs Total 16 Unit costs: 17 Total costs $ 456,000 $ 406,080 $862,080 18 Equivalent units 24000 22560 19 Unit costs $ 19 $ 18$ 37 20 costs to be accounted for 21 Work in process, July 1 $ 22 Started into production $ 862,080 23 Total costs $ 862,080 24 Cost Reconciliation Schedule 25 Costs accounted for 26 Transferred out $754,800 27 Work in process, July 31 28 Materials $ 68,400 29 Conversion costs $ 38,880 $ 107,280 30 Total costs $ 862,080

А B D E 1 Cutting Department Plant 1 2 Production Cost Report 3 For the Monthe Ended July 31, 2020 4 Equivalent Units 5 Quantities Physical Units Materials Conversion Costs 6 Units to be accounted for 7 Work in process, July 1 0 8 Started into production 24000 9 Total units =+B7+B8 10 11 Units accounted for 12 Transferred out =+B14-B13 =+B12*100% =+B12*100% 13 Work in process, July 31 3600 =+B13*100% =+B13*60% 14 Total units =+B9 =+C12+C13 =+D12+D13 15 Costs Materials Conversion Costs Total 16 Unit costs: 17 Total costs |456000 =281280+124800 =+C17+D17 18 Equivalent units =+C14 =+D14 19 Unit costs =+C17/C18 18 37 20 Costs to be accounted for 21 Work in process, July 1 0 22 Started into production 862080 23 Total costs =+E22 24 Cost Reconciliation Schedule 25 Costs accounted for 26 Transferred out =+B12*E19 27 Work in process, July 31 28 Materials =+C13*C19 29 Conversion costs =+D13*D19 =+D28+D29 30 Total costs =+E26+E29