Thakin Industries Inc. manufactures dorm furniture in separate processes. In eac

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 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
T12-Tables

Plant 2
C10-Chairs

Cost Data—July

Work in process, July 1

Materials

Labor

Overhead

   Total

3). For each plant determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 5.25.)
4). For each plant show the assignment of costs to units transferred out and in process.

Expert Answer

Cutting Department

Production Data—July

Plant 1
T12-Tables

Plant 2
C10-Chairs

Work in process units, July 1 0 0 Units started into production 24,600 19,680 Work in process units, July 31 3,690 615 Work in process percent complete 60 80

Cost Data—July

Work in process, July 1

$0 $0

Materials

467,400 354,240

Labor

288,312 135,300

Overhead

127,920 128,904

   Total

$883,632 $618,444

Explanation / Answer

3)

Working:

T12 Tables:

C10 Chairs:

4)

Working:

Please note: There is a difference of $11 in the total costs of C10 chairs on account of rounding off.

Unit costs of production: T12 Tables $             37.00 C10 Chairs $             31.51

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