Borman Corporation manufactures in separate processes refrigerators and freezers 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.
Stamping Department Plant A Plant B Production Data—June R12 Refrigerators F24 Freezers Work in process units, June 1 –0– –0–
Units started into production 20,000 20,000 Work in process units, June 30 4,000 2,500 Work in process percent complete 75 60 Cost Data—June Work in process, June 1 $ –0– $ –0–
Materials 840,000 720,000 Labor 245,000 259,000 Overhead 420,000 292,000 Total $1,505,000 $1,271,000 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 A for June 2014.