Thakin Industries Inc. 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 a product are as follows. Cutting Department Production Data—July T12-Tables Work in process units, July 1 0 Units started into production 21,200 Work in process units, July 31 3,180 Work in process percent complete 60 Cost Data—July Work in process, July 1 $0 Materials 402,800 Labor 248,464 Overhead 110,240 Total $761,504 Compute the physical units of production. T12 Tables Units to be accounted for

physical units  21,200

EU materials    21,200

EU conversion 19,928

Explanation:

Compute the physical units of production

Tables physical units of production during the month of July:

beginning                         0

Started                      21,200  

Total physcal units   21,200

Equivalent units:

materials 21,200 as they are enterted at the beginning it matches the physcical units

conversion: 21,200 - 3,180 (1 - 0.60) = 19.928‬

we start 21,200 but 31,180 were completed until 60% thus we have 40% of 3,180 not completed that is subtracted.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total