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		22,400
Work in process units, July 31		3,360
Work in process percent complete		60
Cost Data—July
Work in process, July 1		$0
Materials		425,600
Labor		262,528
Overhead		116,480
Total		$804,608

Prepare the production cost report for July 2020.

THAKIN INDUSTRIES INC. Cutting Department—Plant 1 Production Cost Report For the Month Ended July 31, 2020
				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								$

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Answer 1

THAKIN INDUSTRIES INC
Cutting Department—Plant 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	22400
Total units	22400
Units accounted for
Transferred out	19040	19040	19040
Work in process, July 31	3360	3360	2016
Total units	22400	22400	21056
		Materials	Conversion Costs	Total
Unit costs:
Total costs		425600	379008	804608
Equivalent units		22400	21056
Unit costs		19.00	18.00	37.00
Costs to be accounted for
Work in process, July 1				0
Started into production				804608
Total costs				804608
Cost Reconciliation Schedule
Costs accounted for
Transferred out				704480	=19040*37
Work in process, July 31
Materials			63840		=3360*19
Conversion costs			36288	100128	=2016*18
Total costs				804608