Process Costing Problem

Zippo's Acro subdivision produces baseballs and uses process costing $($WA method$).$ The work$-$in$-$

process inventory on January $1$ consisted of $145,000$ baseballs $(60\%$ complete as to material, and $40\%$

complete as to conversion costs$)$ with a total cost of $$46,000($material of $$31,000$ and conversion costs

of $$15,000).$ During the month of June, Arco incurred direct material costs of $$990,000$ and conversion

costs of $$780,000,$ and placed $2,500,000$ baseballs into production. At the end of the month, $100,000$

baseballs were not completed. $40\%$ of the direct materials were added and the baseballs were only $20\%$

complete as to conversion costs.

a$.$ What are the equivalent units for direct materials and conversion costs for the month of

June?

b$.$ What is the cost per baseball?

c$.$ Prepare the journal entry to record the total cost of goods completed and transferred

out of WIP to finished goods for the month of June.