Ortega 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.

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 1 for July2010.

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Cutting Department Plant 1 Plant 2 Production Data-July T12-Tables C10-Chairs -0- Work in process units, July 1 Units started into production -0- 20,000 3,000 16,000 Work in process units, July 31 Work in process percent complete 500 60 80 Cost Data-July $ -0- $ -0- 288,000 Work in process, July 1 Materials 380,000 Labor 234,400 125,900 96,700 Overhead 104,000 $718,400 $510,600 Total