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.

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 June2012.

Transcribed Image Text:

Stamping Department Plant A Plant B F24 Freezers Production Data June R12 Refrigerators Work in process units, June 1 Units started into production Wor 20,000 4,000 75 20,000 2,500 60 k in process units, June 30 Work in process percent complete Cost Data-June Work in process, June1 Materials Labor Overhead 840,000 245,000 420,000 $1,505,000 720,000 259,000 292,000 $1,271,000 Total