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.
Plant A Plant B
Production Dataâ?" June R12 Refrigerators F24 Freezers
Work in process units, June 1 -0- -0-
Units started into production 20,000 20,000
Work in process units, June 30 2,000 3,000
Work in process percent complete 70% 50%
Work in process, June 1 $ -0- $ -0-
Materials 840,000 700,000
Labor 200,800 236,000
Overhead 420,000 319,000
Total $1,460,800 $1,255,000
This problem is a weighted average process costing problem. The Plant A is standard with material and labor. The ...
This problem is a weighted average process costing problem. The Plant A is standard with material and labor. The "finished" for Plant A become a "second material" for plant B. The problem shows that 20,000 units were started in Plant B but that is not possible because they had not beginning and Plant A only completed 18,000 to be transferred to Plant B.
Your tutorial is in Excel (attached). Click in cells to see computations. This is now a template for all of these problems.