Polk Company manufactures basketballs. The first step is the production of internal rubber bladders. Materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the Bladder Department for July 2022 are as follows.

Instructions

a. Calculate the following.

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 completed and transferred out and to work in process at the end of the accounting period.

b. Prepare a production cost report for the month of July for the basketballs.

Transcribed Image Text:

Production Data-Basketballs Work in process units, July 1 Units started into production Work in process units, July 31 Units 500 1,000 600 Percentage Complete 60% 40%