Problem 16-3A (Part Level Submission) Thakin Industries Inc. manufactures dorm f
ID: 2413773 • Letter: P
Question
Problem 16-3A (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 Plant2 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 0 21,600 3,240 60 0 17,280 540 80 Cost Data-July Work in process, July 1 Materials Labor Overhead 410,400 253,152 112,320 $775,872 311,040 118,800 113,184 $543,024 Total (a1) Your answer is correct. For each plant compute the physical units of production. T12 Tables C10 Chairs 17280 Units to be accounted for 21600 Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
Answer
Reconciliation of Units
Opening WIP
0
Introduced
21600
TOTAL
21600
Transferred
18360
Closing WIP
3240
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
18360
100%
18360
100%
18360
Closing WIP
3240
100%
3240
60%
1944
Total
21600
Total
21600
Total
20304
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
410400
365472
775872
Total Equivalent Units
21600
20304
Cost per Equivalent Units
$19.0000
$18.0000
$37.0000
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
19.0000
3240
61560
18360
348840
Conversion cost
18.0000
1944
34992
18360
330480
Total
37.0000
TOTAL
$96552
TOTAL
$679320
Reconciliation of Units
Opening WIP
0
Introduced
17280
TOTAL
17280
Transferred
16740
Closing WIP
540
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
16740
100%
16740
100%
16740
Closing WIP
540
100%
540
80%
432
Total
17280
Total
17280
Total
17172
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
311040
231984
543024
Total Equivalent Units
17280
17172
Cost per Equivalent Units
$18.0000
$13.5
$31.5
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
18.0000
540
9720
16740
301320
Conversion cost
13.5
432
5832
16740
225990
Total
31.5
TOTAL
$15552
TOTAL
$527310
Cost accounted for----
T12 Tables
[18360 units x $37]
Transferred out
$ 6,79,320.00
Work In Process:
[3240 units x $19]
Materials
$ 61,560.00
[1944 units x $18]
Conversion Costs
$ 34,992.00
$ 96,552.00
Total costs
$ 7,75,872.00
Cost accounted for----
C10 Chairs
[16740 units x $31.5]
Transferred out
$ 5,27,310.00
Work In Process:
[540 units x $18]
Materials
$ 9,720.00
[432 units x $13.5]
Conversion Costs
$ 5,832.00
$ 15,552.00
Total costs
$ 5,42,862.00
Reconciliation of Units
Opening WIP
0
Introduced
21600
TOTAL
21600
Transferred
18360
Closing WIP
3240
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
18360
100%
18360
100%
18360
Closing WIP
3240
100%
3240
60%
1944
Total
21600
Total
21600
Total
20304
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
410400
365472
775872
Total Equivalent Units
21600
20304
Cost per Equivalent Units
$19.0000
$18.0000
$37.0000
Statement of cost
Cost
Cost/unit
Closing WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
19.0000
3240
61560
18360
348840
Conversion cost
18.0000
1944
34992
18360
330480
Total
37.0000
TOTAL
$96552
TOTAL
$679320