Acc349 Managerial and Cost Accounting: P3-3A Stein Corporation manufactures in separate processes

Acc349 Managerial and Cost Accounting

P3-3A
Stein 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 Plant B
R12 Refrigerators F24 Freezers
Production Data - June
Work in process units, June 1 - -
Units started into production 20,000 20,000
Work in process units, June 30 2,000 3,000
Work in process percent complete 70% 50%

Work in process, June 1 - -
Materials 840,000 700,000
Labor 200,800 236,000
Overhead 420,000 319,000
Total $1,460,800 $1,255,000

Instructions
(a) For each plant:
(1) Compute the physical unit flow.
(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 2005.
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