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 2020 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 the basketballs.

Transcribed Image Text:

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