Cutting Department Production Data—July Plant 1 T12-Tables Plant 2 C10-Chairs Co
ID: 2431025 • Letter: C
Question
Cutting Department
Production Data—July
Plant 1
T12-Tables
Plant 2
C10-Chairs
Cost Data—July
T12 Tables
C10 Chairs
LINK TO TEXT
LINK TO TEXT
Materials
Conversion Costs
LINK TO TEXT
LINK TO TEXT
Materials
Conversion Costs
Total Costs
LINK TO TEXT
LINK TO TEXT
T12 Tables
Costs accounted for:
Transferred out
Work in process
Materials
Conversion costs
Total costs
C10 Chairs
Costs accounted for:
Transferred out
Work in process
Materials
Conversion costs
Total costs
LINK TO TEXT
LINK TO TEXT
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
Costs
Materials
Conversion
Costs
Total
Cost Reconciliation Schedule
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 $0 $0 Materials 390,000 280,000 Labor 234,700 113,000 Overhead 112,240 112,680 Total $736,940 $505,680Explanation / Answer
Ans- For Each Plant:
Physical units of production
T12 Tables C10 Chairs
Units to be accounted for 19,500 17,500
2- Equivalent units of production for materials and for conversion cost
Materials Conversion Costs
T12 Tables 19,500 18,260
C10 Chairs 17,500 17,360
Calculation for Equivalent units of production for conversion cost:
T12-Tables C10-Chairs
Units started into production 19,500 17,500
Work in process units,31 july 3,100 700
Units completed during the year (19,500-3100) 16,400 16,800
(17,500-700)
Work in process percent complete 60 80
Equivalent Units=Units completed+(units in ending inventory*percent complete)
T12-Tables =16,400+3100*60%= 18,260
C10-Chairs= 16,800+700*80%= 17,360
3-The unit costs of production;
Materials Conversion Costs Total costs
Units costs T12Tables $20 $19 $39
(390,000/19,500) ( 234,000+112,240
=346,940/18,260)
Units costs C10Chairs $16 $13 $29
(280,000/17,500) (113,000+112,680
=225,680/17,360)
4-Costs to units transferred out and in process :
T12 Tables
Costs accounted for:
Transferred out (16,400units * $39total costs) $639,600
Work in process
Materials (3,100* $20 materials unit costs) $62,000
Conversion cost(18,260-16400=1,860* $19
conversion units costs) $35,340 97,340
Total costs $ 736,940
C10 Chairs
Costs accounted for:
Transferred Out (16,800units*$29 total cost) $487,200
Work in process
Materials(700units *$16 materials unit cost ) $11,200
Conversion costs (17,360-16,800=560*$13
conversion unit cost) $7,280 18,480
Total costs $505,680
5-Production Cost Report:
THAKIN INDUSTRIES INC.
Cutting Department -Plant 1
Production Cost Report
For the Month Ended July 31, 2017
Equivalent Units
Physical Units Materials Conversion Costs
Quantities
Units to be accounted for
Work in process July1
Started into production 19,500
Total Units 19,500
Units accounted for
Transferred out 16,400 16,400 16,400
Work in process July 31 3,100 3,100 1,860
Total Units 19,500 19,500 18,260
Costs Materials Conversion costs Total
Units Costs
Total Costs $ 390,000 $346,940 $736,940
Equivalent units 19,500 18,260
Units costs $20 $19 $39
Costs to be accounted for
Work in process July 1
Started into production $736,940
Total costs $736,940
Cost Reconciliation Schedule
Costs accounted for
Transferred Out $639,600
Work in process July 31
Materials $62,000
Conversion Costs $35,340 97,340
Total Costs $736,940
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