Sprague Company manufactures basketballs. Materials are added at the begin- ning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2002 are as follows.

Instructions

(a) Calculate the following.
( 1 ) The equivalent units of production for materials and conversion.
(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 July for the basketballs.

Transcribed Image Text:

Percent Production Data-Basketballs Units Complete Work in process units, July 1 500 60% Units started into production 1,600 Work in process units, July 31 600 40% Cost Data Basketballs Work in process, July 1 Materials $750 Conversion costs 600 $1,350 Direct materials 2,400 Direct labor Manufacturing overhead 1,580 1,300