Gregg Industries manufactures plastic molded chairs. The three models of molded chairs, all variations of the same design, are Standard, Deluxe, and Executive. The company uses an operation-costing system.

Gregg has extrusion, form, trim, and finish operations. Plastic sheets are produced by the extrusion operation. During the forming operation, the plastic sheets are molded into chair seats and the legs are added. The Standard model is sold after this operation. During the trim operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finish operation, in which padding is added. All of the units produced receive the same steps within each operation.

The May units of production and direct material costs incurred are as follows:

The total conversion costs for the month of May are:

Required
1. For each product produced by Gregg Industries during May, determine (a) the unit cost and (b) the total cost. Support your answer with appropriate calculations.
2. Now consider the following information for June. All unit costs in June are identical to the May unit costs calculated in requirement 1a. At the end of June, 1,000 units of the Deluxe model remained in £ work in process. These units were 100% complete as to material costs and 60% complete in the trim operation. Determine the cost of the Deluxe model work-in-process inventory at the end of June. 629

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Units Produced Extrusion Materials Form Materials Trim Materials Finish Materials Standard model Deluxe model Executive model 6,000 3,000 2,000 72,000 36,000 24,000 $24,000 12,000 8,000 $44,000 9,000 6,000 $15,000 11000 2,000 12,000 $12,000 Form Trim Finish Extrusion Operation Operation Operation Operation $42,000 Total conversion costsS269,500 S132,000 69,000