Seagren Industries Inc_Process costing_Equivalent units



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 19,000 16,000
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 234,200 110,000
Overhead 104,000 96,700
Total $718,200 $494,700
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 1 for July 2012.


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