Problem: 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.
Stamping Department
Plant A Plant B
Production Data 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%
Cost Data June
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.