Smythe-Klink, Inc. is a manufacturer of outdoor furniture. The furniture is produced in two separate factories where materials are entered at the beginning of the first process.
Labor and overhead costs are incurred evenly throughout all processes. In Factory 1, patio tables are manufactured. In Factory 2, patio table umbrellas are produced.
Given below is production and cost data for the FIRST process in each Factory:
ASSEMBLY DEPARTMENT
Factory 1-1 Factory 2-1
Production Data---April Patio Tables Umbrellas
Work (units) in process, April 1 -0- -0-
Units started in production 25,000 20,800
Work in process (units), April 30 3,750 650
Work in Process percent complete 60% 80%
Cost Date---April .
Work in process, April 1 $ -0- $ -0-
Materials 380,000 288,000
Labor 235,000 126,000
Overhead 104,000 96,700
TOTAL $ 719,000 $ 510,700
REQUIRED:
SHOWING ALL COMPUTATIONS, prepare a Report, in neat and orderly form, that provides the following information for each Factory:
(1) The physical units of production
(2) The equivalent units of production for materials and for conversion costs.
(3) The unit costs of production
(4) The number of units transferred and their total cost
(5) The cost of Work in Process at April 30.