Goulburn Industries manufactures a variety of plastic products, including a series of moulded chairs. The three models of moulded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms) and Executive (with arms and padding). The company uses batch manufacturing and has an operation costing system. The production process includes an extrusion operation and subsequent operations to form, trim and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are moulded into chair seats and the legs are added; the Standard model is sold after this operation. During the trimming operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finishing operation where the padding is added. All the units produced complete the same steps within each operation. The May production run had a total manufacturing cost of $1,347,000. The units of production and direct material costs incurred were as follows:

There was no work in process inventory on 1 May. Manufacturing costs incurred during the month May were as follows:

Required:
1. For each product produced by Goulburn Industries during the month of May, determine:
(a) the unit cost.
(b) The total cost.
Be sure to account for all costs incurred during the month.
2. Prepare journal entries to record the flow of production costs during May.
3. (a) Construct an Excel* spreadsheet to answer requirement 1.
(b) Independent of your answer to requirements land 2, assume that 1000 units of the Deluxe model remained in work in process at the end of the month. These units were 100 per cent complete as to direct material and 60 per cent complete in the trimming operation. Determine the value of the 1000 units of the Deluxe model in Goulburn Industries' work in process inventory at the end of May.

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Units of Extrusion materials Forming materials Trimming materials Finishing materials production 10 000 12 000 Plastic sheets Standard model Deluxe model Executive model Total $90 000 108 000 $36 000 18 000 12 000 $66 000 $13 500 54 000 6 000 36 000 $288 000 4 000 32 000 $18 000 9 000 $22 500 $18 000 Extrusion Forming Trimming Finishing $45 000 Direct labour $27 000 $228 000 360 000 $90 000 Manufacturing overhead 108 000 58 500 36 000