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 1T12-Tables Plant 2C10-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

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

Unit costs-T12 Tables $ $ $

Unit costs-C10 Chairs $ $ $

(4) 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 $

Prepare the production cost report for Plant 1 for July 2014.

SEAGREN INDUSTRIES INC.Cutting Department—Plant 1Production Cost ReportFor the Month Ended July 31, 2014

Equivalent Units

Quantities PhysicalUnits Materials ConversionCosts

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 ConversionCosts 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