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 ..................... Cutting Department T12-Tables
Work in process units, July 1 .................................. – 0–
Units started into production ............................... 20,000
Work in process units, July 31 ................................ 3,000
Work in process percent complete ............................ 60

Cost Data—July
Work in process, July 1 .............................................. $ –0–
Materials .................................................................... 380,000
Labor ........................................................................... 234,400
Overhead ................................................................... 104,000
Total .......................................................................... $718,400

Instructions

a. 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 July 2020.