Question
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
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.
Cutting Department
Production DataJuly
T12-Tables
Work in process units, July 10Units started into production20,000Work in process units, July 313,000Work in process percent complete60Cost DataJuly
Work in process, July 1$0Materials380,000Labor234,400Overhead104,000Total$718,400
Compute the physical units of production.
T12 Tables
Units to be accounted for
eTextbook and Media
Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
T12 Tables
eTextbook and Media
Determine the unit costs of production.
Materials
Conversion Costs
Total Costs
Unit costs-T12 Tables$
$
$
eTextbook and Media
Show the assignment of costs to units transferred out and in process.
T12 Tables
Costs accounted for:
Transferred out
$
Work in process
Materials
$
Conversion costs
Total costs
$
eTextbook and Media
Prepare the production cost report for July 2020.
THAKIN INDUSTRIES INC.
Cutting DepartmentPlant 1
Production Cost Report
For the Month Ended July 31, 2020
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units to be accounted forWork in process, July 1
Started into production
Total units
Units accounted forTransferred out
Work in process, July 31
Total units
Costs
Materials
Conversion
Costs
Total
Unit costsTotal Costs$
$
$
Equivalent units
Unit costs$
$
$
Costs to be accounted forWork in process, July 1$
Started into production
Total costs$
Cost Reconciliation Schedule
Costs accounted forTransferred out$
Work in process, July 31Materials$
Conversion costs
Total costs$
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Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
