Question

               

Problem 16-3A (Part Level Submission)

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

Work in process units, July 1                        0                              0

Units started into production                      24,000                   19,200

Work in process units, July 31                     3,600                     600

Work in process percent complete                           60                           80

                                                               

Cost Data—July

Work in process, July 1

$0                           $0

Materials

456,000                                 345,600

Labor

281,280                                 132,000

Overhead

124,800                                 125,760

   Total

$862,080                              $603,360

               

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(a1)

Correct answer. Your answer is correct.

               

For each plant compute the physical units of production.

T12 Tables

C10 Chairs

Units to be accounted for                            

Entry field with correct answer

24000

Entry field with correct answer

19200

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Attempts: 1 of 3 used    

               

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(a2)

For each plant compute equivalent units of production for materials and for conversion costs.

Materials

Conversion Costs

T12 Tables                          

C10 Chairs                          

Answer 1

Solution a1:

Unit Reconciliation - Plant 1 (Tables)
Total units to account for:
Units in beginning WIP	0
Units started	24000
Total units to account for	24000
Units Accounted for:
Units Completed and transferred out	20400
Units in Ending WIP	3600
Units Accounted for	24000

Unit Reconciliation - Plant 2 (Chairs)
Total units to account for:
Units in beginning WIP	0
Units started	19200
Total units to account for	19200
Units Accounted for:
Units Completed and transferred out	18600
Units in Ending WIP	600
Units Accounted for	19200

Solution a2:

Computation of Equivalent unit of Production - Plant 1 (Tables)
Flow of Production	Flow of physical units	Material	Conversion
Units Accounted for:
Unit completed & Transferred out	20400	20400	20400
Ending WIP:	3600
Material (100%)		3600
Conversion (60%)			2160
Equivalent units of production	24000	24000	22560

Computation of Equivalent unit of Production - Plant 2 (Chairs)
Flow of Production	Flow of physical units	Material	Conversion
Units Accounted for:
Unit completed & Transferred out	18600	18600	18600
Ending WIP:	600
Material (100%)		600
Conversion (80%)			480
Equivalent units of production	19200	19200	19080