Problem 21-3a _ thakin industries inc.

Problem 21-3A _ THAKIN INDUSTRIES INC.

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                  Plant 2

T12­Tables            C10­Chairs

Work in process units, July 1                                       0                              0

Units started into production                     24,200                   19,360

Work in process units, July 31                       3,630                      605

Work in process percent complete          60                           80

Cost Data—July

Work in process, July 1                                  \$0                           \$0

Materials                                                             459,800                 348,480

Labor                                                                     283,624                 133,100

Total                                                                      \$869,264              \$608,388

For each plant compute the physical units of production.

T12 Tables           C10 Chairs

Units to be accounted for

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

Materials             Conversion Costs

T12 Tables

C10 Chairs

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 costs­T12 Tables                                       \$                              \$                                              \$

Unit costs­C10 Chairs                                       \$                              \$                                              \$

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                                          \$

Prepare the production cost report for Plant 1 for July 2017.

THAKIN INDUSTRIES INC.

Cutting Department—Plant 1

Production Cost Report

For the Month Ended July 31, 2017

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