29 Jun Question Problem 16-3A
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
Production Data—July Plant 1
T12-Tables Plant 2
C10-Chairs
Work in process units, July 1 0 0
Units started into production 26,220 22,080
Work in process units, July 31 4,140 690
Work in process percent complete 60 80
Cost Data—July
Work in process, July 1 $0 $0
Materials 524,400 397,440
Labor 323,196 151,800
Overhead 143,520 133,446
Total $991,116 $682,686
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For each plant:
(1) Compute the physical units of production.
T12 Tables C10 Chairs
Units to be accounted for
(2) Compute equivalent units of production for materials and for conversion costs.
Materials Conversion Costs
T12 Tables
C10 Chairs
(3) Determine the unit costs of production. (Round unit costs to 0 decimal places, e.g. 25.)
Materials Conversion Costs Total Costs
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