Shihfan Industries Ltd. manufactures dorm furniture in separate processes. 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 July 2020.

Transcribed Image Text:

Cutting Department Plant 1 Plant 2 Production Data-July C10-Chairs T12-Tables -0- Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete -0- 20,000 18,000 500 3,000 60 80 Cost Data-July Work in process, July 1 HK$ -0- HK$ -0- 2,880,000 Materials 3,800,000 1,100,000 1,048,000 Labor 2,344,000 1,040,000 Overhead Total HK$7,184,000 HK$5,028,000