Borman Corporation manufactures in separate processes refrigerators and freezers 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.
|
Stamping Department
|
|
Plant A
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Plant B
|
|
Production Data-June
|
R12 Refrigerators
|
F24 Freezers
|
|
Work in process units, June 1
|
-0-
|
-0-
|
|
Units started into production
|
20,000
|
20,000
|
|
Work in process units, June 30
|
4,000
|
2,500
|
|
Work in process percent complete
|
75
|
60
|
|
|
|
|
Cost Data-June
|
|
|
|
Work in process, June 1
|
$ -0-
|
$ -0-
|
|
Materials
|
840,000
|
720,000
|
|
Labor
|
245,000
|
259,000
|
|
Overhead
|
420,000
|
292,000
|
|
Total
|
$1,505,000
|
$1,271,000
|
Instructions
(a) 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.
(4) Show the assignment of costs to units transferred out and in process.
(b) Prepare the production cost report for Plant A for June 2012.