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    Stein Corporation - Unit Production/Flow

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    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.