Question
Clark Industries Inc. manufactures furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and
Clark Industries Inc. manufactures 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 two products in two different manufacturing plants are as follows.
Cutting Department
Production Data for July
Work in process units, July 1 for Plant 1 Tables 0
Work in process units, July 1 for Plant 2 Chairs 0
Units started into production for Plant 1 Tables 21,200
Units started into production for Plant 2 Chairs 16,960
Work in process units, July 31 for Plant 1 Tables 3,180
Work in process units, July 31 for Plant 2 Chairs 530
Work in process percent complete for Plant 1 Tables 60
Work in process complete for Plant 2 Chairs 80
Cost Data for July
Work in process, July 1 for Plant 1 tables $0
Work in process, July 1 for Plant 2 chairs $0
Materials for Plant 1 tables 402,800
Materials for Plant 2 chairs 305,280
Labor for Plant 1 tables 248,464
Labor for Plant 2 chairs 116,600
Overhead for Plant 1 tables 110,240
Overhead for Plant 2 chairs 111,088
Total for Plant 1 Tables $761,504
Total for Plant 2 Chairs $532,968
What are the equivalent units of production for materials and for conversion costs for each Plant?
What are the unit costs of production for each Plant? (Round to 2 decimals)
What is the cost reconcilliation schedule?
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Managerial Accounting For Managers
Authors: Eric Noreen
1st Edition
73526975, 978-0073526973
