a2 Materials Conversion Costs Problem 163A Part Level Submis

(a2)

Materials

Conversion Costs

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 20,000 18,000 Work in process units, July 31 3,000 500 Work in process percent complete 60 80 Cost Data—July Work in process, July 1 $0 $0 Materials 380,000 288,000 Labor 234,400 110,000 Overhead 104,000 104,800 Total $718,400 $502,800

(a2) Your answer is partially correct. Try again. For each plant compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs T12 Tables C10 Chairs

Solution

Equivalent units:

T12 tables

C10 chairs

Materials

Conversion costs

Materials

Conversion costs

Opening WIP

                        -  

                    -  

Started production

         20,000

(20000-3000) + (3000 x 60%)

     18,000

(18000 -500) + (500 x 80%)

           18,800

         17,900

Note: