Stangel Company manufactures basketballs and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred uniformly. Stangel uses the FIFO method to compute equivalent units. Production and cost data for the month of August are as shown below.

Instructions
(a) Calculate the following for both the basketballs and the soccer balls.
(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 August for the basketballsonly.

Transcribed Image Text:

Percent Complete 60% Production Data-Basketballs Work in process units, August 1 Units started into production Work in process units, August 31 Units 500 1,600 600 50% Cost Data-Basketballs Work in process, August 1 Direct materials Direct labor Manufacturing overhead $1,125 1,600 1,175 1,000 Percent Complete 80% Production Data- Soccer Balls Work in process units, August 1 Units started into production Work in process units, August 31 Units 200 2,000 150 70% Cost Data- Soccer Balls Work in process, August 1 Direct materials Direct labor Manufacturing overhead 450 2,600 1,000 995