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Borman Corporation 20000

Price: $2.50

Borman Corporation manufactures in separate processes refrigerators and freezers
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.

Production Data - June   R12 F24
Work in process units, June 1   -    -  
Units started into production   20,000  20,000
Work in process units, June 31   4,000  2,500
Work in process percent complete   75  60
Cost Data - June
Work in process, June 1   -    -  
Materials   840,000  720,000
Labor   245,000  259,000
Overhead   420,000  292,000
Total   1,505,000  1,271,000

(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 A for June 2014.

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