Polk Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs
Question:
Polk 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 2020 are as follows.
Production DataBasketballs | Units | Percent Complete | |||||
Work in process units, July 1 | 490 | 60 | % | ||||
Units started into production | 1,420 | ||||||
Work in process units, July 31 | 500 | 40 | % | ||||
Cost DataBasketballs | |||||||
Work in process, July 1 | |||||||
Materials | $800 | ||||||
Conversion costs | 600 | $1,400 | |||||
Direct materials | 2,638 | ||||||
Direct labor | 1,188 | ||||||
Manufacturing overhead | 1,110 |
Calculate the equivalent units of production for materials and conversion costs.
Materials | Conversion Costs | |||
Equivalent Units |
eTextbook and Media
Calculate the unit costs of production for materials and conversion costs. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials | Conversion Costs | |||
Cost per unit | $ | $ |
eTextbook and Media
Calculate the assignment of costs to units transferred out and in process at the end of the accounting period.
Costs accounted for: | ||
Transferred out | $ | |
Work in process, July 31 | ||
Materials | $ | |
Conversion costs | ||
Total costs | $ |
eTextbook and Media
Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 2,250.)
POLK COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2020 | ||||||||
Equivalent Units | ||||||||
Quantities | Physical Units | Materials | Conversion Costs | |||||
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 | ||||||||
Total costs | $ | $ | $ | |||||
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 |