Seagren Industries Inc. manufactures in separate processes furniture for homes.

Question

Seagren Industries Inc. manufactures in separate processes furniture for homes. 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.

b. Prepare the production cost report for Plant 1 for July 2014.

Problem 16-3A (Part Level Submission) Seagren Industries Inc. manufactures in separate processes furniture for homes. 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 Plant1 T12-Tables Plant2 C10-Chairs Production Data-Jul Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 20,900 3,300 60 17,600 550 80 Cost Data-Jul Work in process, July 1 Materials Labor Overhead $0 418,000 257,620 114,400 $790,020 $0 316,800 121,000 106,370 $544,170 Total

Explanation / Answer

Cost of Prduction report Cutting Dept-Plant 1 July 31,2014 Equivalent Units Flow Of Units Physical Units Direct Material Convesrion Cost Units to be accounted for Beginning work in process inventory July 1 0 Units started this period 20900 Total u nits to be accounted for   Ans A 20900 Units accounnted for: Completed and transferred out (b) 17600 17600 17600 Ending work in progress inventory© July 31 3300 3300 1980 Total units to be accounted for (f)      20900 20900 19580 Flow of Cost Cost in the begnning work in progress inventory 0 0 0 Cost added in current period 790020 418000 372020 Total Cost to be accounted for (e)     790020 418000 372020 Equivalent Units 20900 20900 19580 Cost per equivalent unit (a)    (e/f) 39.00 20.00 19.00 Cost to be accounted for Cost in the begnning work in progress inventory July 1 0 0 0 Started into production 790020 418000 372020 Total Cost (e)     790020 418000 372020 Cost reconciliation Schedule Cost accounted for Cost assigned to units transferred out (a*b) 686400 352000.00 334400.00 Cost in ending work in progress inventory (a*c)    July 31 103620 66000.00 37620.00 Total Cost accounted for    790020.00 418000.00 372020.00

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