P3.3A (LO 3, 4), AP 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 DataJuly

Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete

Cost DataJuly

Work in process, July 1 Materials

Labor

Overhead

Total

Cutting Department T12-Tables

0 20,000

3,000 60

$ 0 380,000 234,400 104,000

$718,400

Problems: Set A 3-41

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.