Problem 16-3A Seagren Industries Inc. manufactures in separate processes furnitu
ID: 2415706 • Letter: P
Question
Problem 16-3A 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 2 T12-Tables C10-Chai Plant 1 uction Data-Ju Work in process units, July 1 Units started into production Work in process units, July 31 Work in 19,000 3,000 60 0 16,000 500 80 in process percent complete Data-Ju Work in process, July 1 Materials Labor Overhead 288,000 110,000 96,700 $718,200 $494,700 0 380,000 234,200 104,000 TotalExplanation / Answer
Problem 16-3A
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
Production Data—July
Plant 1
T12-Tables
Plant 2
C10-Chairs
Work in process units, July 1 0 0
Units started into production 22,610 19,040
Work in process units, July 31 3,570 595
Work in process percent complete 60 80
For each plant:
(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. (Round unit costs to 0 decimal places, e.g. 25.)
(4) Show the assignment of costs to units transferred out and in process.
Problem 16-3A
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
Production Data—July
Plant 1
T12-Tables
Plant 2
C10-Chairs
Work in process units, July 1 0 0
Units started into production 22,610 19,040
Work in process units, July 31 3,570 595
Work in process percent complete 60 80
For each plant:
(1) Compute the physical units of production.
(2) Compute equivalent units of production for materials and for conversion costs.
Mateial 100% Conversions 60% T 12 Tables units Transferred out 16,000 16,000 Work in process July 31 3,000 1800 Total units 19,000 17,800 Mateial 100% Conversions 60% C10 Chairs 15,500 15,500 Work in process July 31 500 300 Total units 16,000 15,800(3) Determine the unit costs of production. (Round unit costs to 0 decimal places, e.g. 25.)
Mateial Conversions Total T 12 Tables Material = $380,000/ 19000 units $20.00 $18.99 $39 Conversion ($234,200+104,000)/17800 units C10 Chairs Material = $288,000/ 16000 units $18.00 $13.08 $31 Conversion ($110,000+96,700)/15800 units(4) Show the assignment of costs to units transferred out and in process.
T 12 tables Costs accounted for Transferred out( 16000 x $39) $624,000 work in process Material (3,000 X $20) $60,000 Conversion( 1800 x $19) $34,200 $94,200 Total Costs $718,200 C 10 chairs Costs accounted for Transferred out( 15500 x $31) $480,500 work in process Material (500 X $18) $9,000 Conversion( 400 x $13) $5,200 $14,200 Total Costs $494,700