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 21,000 16,800 Work in process units, July 31 3,150 525 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $0 $0 Materials 399,000 302,400 Labor 246,120 115,500 Overhead 109,200 110,040 Total $754,320 $527,940 (a1) Your answer is correct. For each plant compute the physical units of production. T12 Tables C10 Chairs Units to be accounted for Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Attempts: 1 of 3 used (a2) Your answer is correct. For each plant compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs T12 Tables C10 Chairs Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Attempts: 1 of 3 used (a3) Your answer is correct. For each plant determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 5.25.) Materials Conversion Costs Total Costs Unit costs-T12 Tables $ $ $ Unit costs-C10 Chairs $ $ $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Attempts: 1 of 3 used (a4) For each plant show the assignment of costs to units transferred out and in process. 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 $

Answer 1

a(4)
	T12 Tables
Costs accounted for:
Transferred out		660450	=17850*37
Work in process
Materials	59850		=(3150*19)
Conversion costs	34020	93870	=1890*18
Total costs		754320
	C10 Chairs
Costs accounted for:
Transferred out		512825.25	=16275*31.51
Work in process
Materials	9450.00		=525*18
Conversion costs	5674.20	15124.20	=420*13.51
Total costs		527949.45
Alternatively:
	C10 Chairs
Costs accounted for:
Transferred out		512825
Work in process
Materials	9450
Conversion costs	5674	15124
Total costs		527949
Workings:
	T12 Tables		C10 Chairs
	Materials	Conversion Costs	Materials	Conversion Costs
Units completed and transferred out	17850	17850	16275	16275
Work in process units, July 31	3150	1890	525	420
Equivalent units of production	21000	19740	16800	16695
	T12 Tables		C10 Chairs
	Materials	Conversion Costs	Materials	Conversion Costs
Total costs	399000	355320	302400	225540
Divide by Equivalent units of production	21000	19740	16800	16695
Unit costs of production	19.00	18.00	18.00	13.51