Stein 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 of units transferred out and in process.

(b) Prepare the production cost report for Plant 1 for July 2002

Transcribed Image Text:

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 Plant 1 T12-Tables -0- Plant 2 C10-Chairs 20,000 -0- 18,000 1,000 500 60% 80% Cost DataJuly Work in process, July 1 Materials Labor Overhead Total $ -0- $ -0- 380,000 288,000 190,000 118,100 104,000 96,700 $674,000 $502,800