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 as follows.

Instructions
(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 thebasketballs.

Transcribed Image Text:

Percentage Complete 60% Production Data-Basketballs Units 500 1,000 600 Work in process units, July 1 Units started into production ork in process units, July 31 Cost Data-Basketballs Work in process, July 1 40% Materials $750 600 Conversion costs Direct materials Direct labor Manufacturing overhead $1,350 2,400 1,580 1,240