The July production of Bait Buckets for Flying Anglers Supply Division consisted of batch X337 (2,000 deluxe) and batch Z444 (4,000 basic). Each batch was started and finished during July, and there was no beginning or ending work in process. Costs incurred were as follows:

Direct Material:

Batch X337, $42,000, including $2,500 for packaging material; batch Z444, $45,000.

Conversion Costs:

Preparation Department, predetermined rate of $7.50 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $.50 per unit. (Only the deluxe buckets are packaged.)

Required:

1. Compute the July product cost for each type of bait bucket.

2. Prepare journal entries to record the cost flows during July.