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 two products in two different manufacturing plants are as follows.

Cutting Department

Production Data-July Plant 1 Plant 2

T12-Tables C10-Chairs

Work in process units, July 1 0 0

Units started into production 23,800 19,040

Work in process units, July 31 3,570 595

Work in process percent complete 60 80

Cost Data-July

Work in process, July 1 $0 $0

Materials 452,200 342,720

Labor 278,936 130,900

Overhead 123,760 124,712

Total $854,896 $598,332

(a1)

For each plant compute the physical units of production.

T12 Tables C10 Chairs

Units to be accounted

(a2)

For each plant compute equivalent units of production for materials and for conversion costs.

Materials Conversion Costs

T12 Tables

C10 Chairs

(a3)

For each plant determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 5.25.)

Materials Conversion Costs Total Costs

Unit costs-T12 Tables $ $ $

Unit costs-C10 Chairs $ $ $

(a4)

For each plant show the assignment of costs to units transferred out and in process.

T12 Tables

Cost accounted for:

Transferred out $

Work in process

Materials $

Conversion costs {insert answer here} {insert answer here}

Total costs $

C10 Chairs

Costs accounted for:

Transferred out $

Work in process

Materials $

Conversion Costs {insert answer here} {insert answer here}

Total costs $

(b)

Prepare the production cost report for Plant 1 for July 2017.

THAKIN INDUSTRIES INC.

Cutting Department-Plant 1

Production Cost Report

For the Month Ended July 31, 2017

Equivalent Units

Quantities Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, July 1 {insert answer here}

Started into production {answer}

Total units {answer}

Units accounted for

Transferred out {answer} {answer} {answer}

Work in process, July 31 {answer} {answer} {answer}

Total units {answer} {answer} {answer}

Costs Materials Conversion Costs Total

Unit Costs

Total Costs $ $ $

Equivalent units {answer} {answer}

Unit Costs $ $ $

Costs to be accounted for

Work in process, July 1 $

Started into production {answer}

Total costs $

Cost Reconciliation Schedule

Cost accounted for

Transferred Out $

Work in process, July 31

Materials $

Conversion costs {answer} {answer}

Total costs $