Seagren Industries Inc. manufactures in separate processes furniture for homes.
ID: 2465815 • Letter: S
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.
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
SEAGREN INDUSTRIES INC.
Cutting Department—Plant 1
Production Cost Report
For the Month Ended July 31, 2014
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, July 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, July 31
Total units
Costs
Materials
Conversion
Costs
Total
Unit costs
Total Costs
Equivalent units
Unit costs
Costs to be accounted for
Work in process, July 1
Started into production
Total costs
Cost Reconciliation Schedule
Costs accounted for
Transferred out
Work in process, July 31
Materials
Conversion costs
Total costs
Cutting Department
Production Data—July
Plant 1
T12-Tables
Plant 2
C10-Chairs
Cost Data—July
Work in process, July 1
$0 $0Materials
406,600 308,160Labor
250,594 117,700Overhead
111,280 103,469Total
$768,474 $529,329Explanation / Answer
Solution :
SEAGREN INDUSTRIES INC.
Cutting Department—Plant 1
Production Cost Report
For the Month Ended July 31, 2014
Equivalent Units
Units to be accounted for
Physical Units
Materials
Conversion Costs
Work in process, July 1
0
Started into production
20330
Total units
20330
Units accounted for
Transferred out (20330-3210)
17120
17120
17120
Work in process, July 31
3210
1926
1926
(3210*60%)
Total units
20330
19046
19046
Costs
Materials
Conversion Costs
Total
Unit costs
Costs in July
406,600
361,874
768,474
(250594+111280)
Equivalent units
19,046
19,046
38,092
Unit costs
21.35
19.00
40.35
Cost to be accounted for
Work in process, July 1
-
-
Started into production
768,474
Total costs
768,474
Cost Reconciliation Schedule
Costs accounted for
Transferred out (17120*40.35)
690,763
Work in process, July 31
Materials (1926*21.35)
41,117
Conversion costs (1926*19)
36,594
77,711
Total costs
768,474
SEAGREN INDUSTRIES INC.
Cutting Department—Plant 1
Production Cost Report
For the Month Ended July 31, 2014
Equivalent Units
Units to be accounted for
Physical Units
Materials
Conversion Costs
Work in process, July 1
0
Started into production
20330
Total units
20330
Units accounted for
Transferred out (20330-3210)
17120
17120
17120
Work in process, July 31
3210
1926
1926
(3210*60%)
Total units
20330
19046
19046
Costs
Materials
Conversion Costs
Total
Unit costs
Costs in July
406,600
361,874
768,474
(250594+111280)
Equivalent units
19,046
19,046
38,092
Unit costs
21.35
19.00
40.35
Cost to be accounted for
Work in process, July 1
-
-
Started into production
768,474
Total costs
768,474
Cost Reconciliation Schedule
Costs accounted for
Transferred out (17120*40.35)
690,763
Work in process, July 31
Materials (1926*21.35)
41,117
Conversion costs (1926*19)
36,594
77,711
Total costs
768,474
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