Problem:
Seagren Industries Inc. manufactures in separate processes furniture for homes. 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
|
|
|
Plant 1
|
Plant 2
|
|
Production Data-July
|
T12-Tables
|
CIO-Chairs
|
|
Work in process units, July 1
|
0
|
0
|
|
Units started into production
|
26,410
|
22,240
|
|
Work in process units, July 31
|
4,170
|
695
|
|
Work in process percent complete
|
60
|
80
|
|
Cost Data-July
|
|
|
|
Work in process, July 1
|
$0
|
$0
|
|
Materials
|
528,200
|
400,320
|
|
Labor
|
325,538
|
152,900
|
|
Overhead
|
144,560
|
134,413
|
|
Total
|
$998,298
|
$687,633
|
(1) Compute the physical units of production.
(2) Compute equivalent units of production for materials and for conversion costs.
(3) Determine the unit costs of production.
(4) Show the assignment of costs to units transferred out and in process.