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Problem 16-3A (Part Level Submission) Cutting Department Production Data—July Pl

ID: 2611813 • Letter: P

Question

Problem 16-3A (Part Level Submission)

Cutting Department

Production Data—July

Plant 1
T12-Tables

Plant 2
C10-Chairs

Cost Data—July

(a1)

T12 Tables

C10 Chairs

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(a2)

Materials

Conversion Costs

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(a3)

Materials

Conversion Costs

Total Costs

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(a4)

T12 Tables

Costs accounted for:

   Transferred out

   Work in process

      Materials

      Conversion costs

         Total costs

C10 Chairs

Costs accounted for:

   Transferred out

   Work in process

      Materials

      Conversion costs

         Total costs

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(b)

THAKIN INDUSTRIES INC.
Cutting Department—Plant 1
Production Cost Report
For the Month Ended July 31, 2017

Equivalent Units

Quantities

Physical
Units


Materials

Conversion
Costs


Costs


Materials

Conversion
Costs


Total

Cost Reconciliation Schedule

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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

Production Data—July

Plant 1
T12-Tables

Plant 2
C10-Chairs

Work in process units, July 1 0 0 Units started into production 24,200 19,360 Work in process units, July 31 3,630 605 Work in process percent complete 60 80

Cost Data—July

Work in process, July 1 $0 $0 Materials 459,800 348,480 Labor 283,624 133,100 Overhead 125,840 126,808    Total $869,264 $608,388

(a1)

Your answer is correct. For each plant compute the physical units of production.

T12 Tables

C10 Chairs

Units to be accounted for

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(a2)

Your answer is correct. For each plant compute equivalent units of production for materials and for conversion costs.

Materials

Conversion Costs

T12 Tables

C10 Chairs

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(a3)

Your answer is correct. For each plant determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 5.25.)

Materials

Conversion Costs

Total Costs

Unit costs-T12 Tables $

$

$

Unit costs-C10 Chairs $

$

$

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Attempts: 2 of 3 used

(a4)

Your answer is partially correct. Try again. For each plant show the assignment of costs to units transferred out and in process.

T12 Tables

Costs accounted for:

   Transferred out

$

   Work in process

      Materials

$

      Conversion costs

         Total costs

$

C10 Chairs

Costs accounted for:

   Transferred out

$

   Work in process

      Materials

$

      Conversion costs

         Total costs

$

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Attempts: 3 of 3 used

(b)

Prepare the production cost report for Plant 1 for July 2017.

THAKIN INDUSTRIES INC.
Cutting Department—Plant 1
Production Cost Report
For the Month Ended July 31, 2017

Equivalent Units

Quantities

Physical
Units


Materials

Conversion
Costs

Units to be accounted for    Work in process, July 1

   Started into production

      Total units

Units accounted for    Transferred out

   Work in process, July 31

      Total units


Costs


Materials

Conversion
Costs


Total

Unit costs    Total Costs $

$

$

   Equivalent units

   Unit costs $

$

$

Costs to be accounted for    Work in process, July 1 $

   Started into production

      Total costs $

Cost Reconciliation Schedule

Costs accounted for    Transferred out $

   Work in process, July 31       Materials $

      Conversion costs

   Total costs $

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Explanation / Answer

A1. Units of production of tables by plant1=

24200-3630=20570 units

Units of production of chairs by plant 2=

19360-605=18755 units

A2)

Conversion cost= Direct Labour+Overheads

A3=Unit cost

31.4

A4)

Cost Transfer out table T12

Cost Material cost conversion cost Table 459,800 409,464 Chair 348,000 259,908