Problem 17-3A (Part Level Submission) Thakin Industries Inc. manufactures dorm f
ID: 2329750 • Letter: P
Question
Problem 17-3A (Part Level Submission) 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 Plant 1 T12-Tables Plant 2 C10-Chairs Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 24,800 3,720 60 19,840 620 80Explanation / Answer
Calculation of Assignment of costs to units transferred out and in process:
Plant 1 Production Report
Cost Reconcilation Schedule
Particulars T12 Tables C10 Chairs Units Introduced 24,800 19,840 Units in process at month end(A) 3,720 620 % of Completion(B) 60% 80% Total Units Fully Produced(Transferred out)(C) 21,080 19,220 Transferred Out Units(D) 21,080 19,220 Material Cost per unit(E) 19 18 Conversion cost per unit(F) 18 13.51 Material Cost for Units transferred out(CXE) 400,520 345.960 Conversion Cost for Units transferred out(CXF) 379,440 259,651 Total Cost for Units Transferred out ((CXE) + (CXF)) 779,960 605,611 Material Cost for Incomplete Units((AXE) 70,680 11,160 Conversion Cost for Incomplete units (AXBXF) 40,176 6,701 Total Cost for Units in process ((AXE) + (AXBXF)) 110,856 17,861