Ortega Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning

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Ortega Industries Inc. manufactures in separate processes furniture 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 - July			T12 Tables	C10 Chairs
Work in process units, July 1			-	-
Units started into production			20,000	16,000
Work in process units, July 31			3,000	500
Work in process percent complete			60	80
Cost Data - July
Work in process, July 1			-	-
Materials			380,000	288,000
Labor			234,400	125,900
Overhead			104,000	96,700
Total			718,400	510,600

Instructions
(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 1 for July 2010.