Mallett Industries Inc. manufactures in separate processes furniture for homes. 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.

Instructions
(a) For each plant:
(1) Compute the physical units of production.
(2) Compute equivalent units of production for materials and for conversion costs.
(3) Determine the unit costs of production.
(4) Show the assignment of costs to units transferred out and in process.
(b) Prepare the production cost report for Plant 1 for July2011.

Transcribed Image Text:

Cutting Department Plant 1 T12-Tables Plant 2 C10-Chairs Production Data-Jul Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 20,000 3,000 60 16,000 500 80 Cost Data-July Work in process, July 1 Materials Labor Overhead 380,000 234,400 104,000 718,400 288,000 125,900 96,700 $510,600 Total