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 1		0
Units started into production		21,800
Work in process units, July 31		3,270
Work in process percent complete		60
Cost DataJuly
Work in process, July 1		$0
Materials		414,200
Labor		255,496
Overhead		113,360
Total		$783,056

Compute the physical units of production. Compute equivalent units of production for materials and for conversion costs. Determine the unit costs of production. Show the assignment of costs to units transferred out and in process. Prepare the production cost report for July 2020.