Thakin Industries Inc. manufactures dorm furniture in separate processes. In eac
ID: 2330043 • Letter: T
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-Jul Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete T12-Tables 23,200 3,480 60 Cost Data-Jul Work in process, July 1 Materials Labor Overhead S0 440,800 271,904 120,640 $833,344 Total Compute the physical units of production. T12 Tables Units to be accounted for Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs T12 Tables Determine the unit costs of production. Materials Conversion Costs Total Costs Unit costs-T12 Tables Show the assignment of costs to units transferred out and in process. T12 TablesExplanation / Answer
Answers
= 23200 units – 3480 units
= 19,720 units.
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
19,720
100%
19,720
100%
19,720
Closing WIP
3,480
100%
3,480
60%
2,088
Total
23,200
Total
23,200 equivalent units
Total
21,808 equivalent unit
>For Material = 23,200 equivalent units
> For Conversion cost = 21,8080 equivalent units
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ -
$ -
$ -
Cost incurred during period
$ 440,800.00
$ 392,544.00
$ 833,344.00
Total Cost to be accounted for
$ 440,800.00
$ 392,544.00
$ 833,344.00
Total Equivalent Units
23,200
21,808
Cost per Equivalent Units
$ 19.00 per unit
$ 18.00 per unit
#DIV/0!
>For Material = $ 19.00
> For Conversion cost = $ 18.00
Total cost = 19 + 18 = $ 37.00 per unit
Costs accounted for:
Transferred out
[19720 units x $ 37]
$ 729,640.00
WIP:
Material [3480 units x $ 19]
$ 66,120.00
Conversion cost [ 2088 units x $ 18]
$ 37,584.00
$ 103,704.00
Total Costs
$ 833,344.00
Production Cost report
Quantities
Physical units
Equivalent Unit - Material
Equivalent Unit - Conversion costs
Units to be accounted for:
WIP Jul 1
-
Started into production
23,200
Total Units
23,200
Units accounted for:
Transferred out
19,720
19,720
19,720
WIP Jul 31
3,480
3,480
2,088
Total units
23,200
23,200
21,808
COSTS
Material
Conversion costs
Total
Unit Costs:
Total Costs
$ 440,800.00
$ 392,544.00
$ 833,344.00
Equivalent Units
23,200
21,808
Total Units
23200
Units accounted for:
Transferred out
19,720
19,720
19,720
WIP Jul 31
3,480
3,480
2,088
Total Units
23,200
23,200
21,808
COSTS
Material
Conversion costs
Total
Unit Costs:
Total Costs
$ 440,800.00
$ 392,544.00
$ 833,344.00
Equivalent Units
23,200
21,808
Unit Costs
$ 19.00
$ 18.00
$ 37.00
Cost to be accounted for:
WIP Jul 1
$ -
Started into production
$ 833,344.00
Total costs
$ 833,344.00
COST RECONCILIATION SCHEDULE
Costs accounted for:
Transferred out [ 19720 x $ 37]
$ 729,640.00
WIP, Jul 31
Material
[3480 units x $ 19]
$ 66,120.00
Conversion cost
[2088 units x $ 18]
$ 37,584.00
$ 103,704.00
Total Costs
$ 833,344.00
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
19,720
100%
19,720
100%
19,720
Closing WIP
3,480
100%
3,480
60%
2,088
Total
23,200
Total
23,200 equivalent units
Total
21,808 equivalent unit
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