Holiday Company manufactures basketballs and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred uniformly. Holiday uses the FIFO method to compute equivalent units. Production and cost data for the month of August are shown below.

Instructions
(a) Calculate the following for both the basketballs and the soccer balls.
(1) The equivalent units of production for materials and conversion costs.
(2) The unit costs of production for materials and conversion costs.
(3) The assignment of costs to units transferred out and in process at the end of the accounting period.
(b) Prepare a production cost report for the month of August for the basketballsonly.

Transcribed Image Text:

Production Data-Basketballs Units Work in process units, August 1 Units started into production 2 Work in process units, August 31 600 Percent Complete 60% 50% Percent Complete 80% Production Data-Soccer Balls Units 200 2,000 150 500 2,000 work in process units, August 1 Units started into production work in process units, August 31 70% Cost Data-Basketballs Work in process, August 1 Direct materials Direct labor Manufacturing overhead $1,125 1,600 1,280 1,000 Cost Data Soccer Balls Work in process, August 1 Direct materials Direct labor Manufacturing overhead $ 450 2,800 1,000 1,394