The Evanston Company produces a single product on a continuous basis. During January, 4,000 units were completed. The July 31 ending work-in-process inventory contained 1000 units, 50% complete as to materials and 25% complete as to conversion. Evanston uses standard costs for planning and control. The following standard costs are based on a monthly volume of 4,000 equivalent units with fixed manufacturing overhead budgeted at $160,900 per month.

Direct materials (1) $144,000

Direct labor (2) 176,000

Variable overhead (3) 40,000

Fixed manufacturing overhead 160,900

(1) (3 square meters per unit x $12.00 per meter) x 4,000 = $144,000 (2) (2 hours per unit x $22.00 per hour) x 4,000 = $176,000 (3) (2 hours per unit x $5.00 per hour) x 4,000 = $40,000

Actual July production costs were:

Direct materials	$161,050
Direct labor	190,500
Manufacturing overhead	202,330

Required a. Determine the equivalent units of materials and conversion manufactured during July using the weighted average method. Equivalent units of materials: Equivalent units of conversion: b. Based on the July equivalent units of materials and conversion, prepare a July performance report for the Evanston Company. Hint: Combine variable and fixed manufacturing overhead data in the report. Note: Do not use any negative signs with your answers.

Evanston Company
Performance Report
For the Month of July
	Actual	Flexible Budget	Variance
Direct materials				Favorable/Unfavorable
Direct labor				Favorable/Unfavorable
Manufacturing overhead				Favorable/Unfavorable
Total				Favorable/Unfavorable