Q3: 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 2017 are shown in the table below.

(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 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.

Production DataBasketballs				Units		Percent Complete
Work in process units, July 1				510		60	%
Units started into production				1,440
Work in process units, July 31				570		40	%
Cost DataBasketballs
Work in process, July 1
Materials		$780
Conversion costs		580		$1,360
Direct materials				2,350
Direct labor				1,690
Manufacturing overhead				1,240