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Stein Corporation - Unit Production/Flow

P3-3A Stein 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.

(a) For each plant:

(1) Compute the physical unit flow.
(2) Compute equivalent units of production for materials and for conversion costs.

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Solution Preview

For Plant A
Stein Corporation
Stamping Department Plant A
Production Cost Report
For the Month Ended June 30

Equivalent Units
Physical Conversion
Quantities Units Materials Costs

Units to be accounted for
Work in process, June 1 0
Started into production 20,000
Total units 20,000

Units account for

Transferred out 18,000 18,000 18,000
Work in process, June 30 2,000 2,000 1,400
Total units accounted for 20,000 20,000 19,400

2,000 units x 70% complete with respect to ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to find Stein Corporation's physical unit flow and equivalent units of production for materials and for conversion costs for both plants.