# Problem 16-3A – Seagren Industries Inc. manufactures in separate processes furniture for homes

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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 Dataâ€”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 Dataâ€”July

Work in process, July 1 \$0 \$0

Materials 524,400 397,440

Labor 323,196 151,800

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

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 Departmentâ€”Plant 1

Production Cost Report

For the Month Ended July 31, 2014

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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