21-5b

Fong Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2012 are as follows.

Production DataBasketballs				Units		Percent Complete
Work in process units, July 1				700		56	%
Units started into production				1,070
Work in process units, July 31				500		30	%
Cost DataBasketballs
Work in process, July 1
Materials		$790
Conversion costs		550		$1,340
Direct materials				1,865
Direct labor				1,320
Manufacturing overhead				4,662

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

FONG COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2012 Equivalent Units Conversion Materials Costs Physical Units Quantities Units to be accounted for Work in process, July 1 Started into production Total units Units accounted for Transferred out Work in process, July 31 Total units Costs Materials Conversion Costs Total Unit costs Costs in July Equivalent units Unit costs Costs to be accounted for Work in process, July 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs