Complete four steps necessary to prepare a production cost report 1 answer below »
Freedo 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. Â Â Â Â Â Â Â Â Cutting DepartmentÂ Â Â Â Â Â Â Â Production Dataâ€”AugustÂ Â Â Â Â Â Â Plant 1Plant 2 T12-TablesC10-Chairs WIP units,Aug 1-0–0- Units start production 20,00015,0000 WIP in process,AUG312,000500 WIP percent complet50% 80% Â > WIP Aug 1 $-0-$-0- Materials 380,000 225,000 Labor190,000 118,100 OH 76,00060,700 Total=$646,000 =403,800 IF you want please: Complete four steps necessary to prepare a production cost report Instructions (a)For each plant: (1)Compute the physical unit flow. (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 of units transferred out and in process.