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 a product are as follows.

		Cutting Department
Production Data—July		T12-Tables
Work in process units, July 1		0
Units started into production		20,400
Work in process units, July 31		3,060
Work in process percent complete		60
Cost Data—July
Work in process, July 1		$0
Materials		387,600
Labor		239,088
Overhead		106,080
Total		$732,768

Prepare the production cost report for July 2020.

Answer 1

Production Cost Report
For the Month Ended July 31, 2020
		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, July 1	0
Started into production	20400
Total units	20400
Units accounted for
Transferred out	17340	17340	17340
Work in process, July 31	3060	3060	1836
Total units	20400	20400	19176
		Materials	Conversion Costs	Total
Unit costs:
Total costs		387600	345168	732768
Equivalent units		20400	19176
Unit costs		19.00	18.00	37.00
Costs to be accounted for
Work in process, July 1				0
Started into production				732768
Total costs				732768
Cost Reconciliation Schedule
Costs accounted for
Transferred out				641580	=17340*37
Work in process, July 31
Materials			58140		=3060*19
Conversion costs			33048	91188	=1836*18
Total costs				732768