Question

Problem 17-5A (Part Level Submission) 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 Percent Complete 60 % Units Production Data-Basketballs Work in process units, July 1 Units started into production Work in process units, July 31 Cost Data-Basketballs Work in process, July 1 590 1,230 530 40 % Materials $790 Conversion costs Direct materials Direct labor Manufacturing overhead 570 $1,360 2,920 1,610 1,460

Answer 1

			Polk Company
				Equivalent units
			Physical	Mateials	Conversion
			units		costs
Quantities
Units to be accounted for
Work in process,July 1			590
Started into production			1,230
Total units			1820
Units accounted for
Transferred out			1290	1290	1290
Work in process,July 31			530	530	212
Total units			1820	1820	1502
Costs				Materials	CC	Total
Unit costs
Costs in July				3710	3640	7350
Equivalent units				1820	1502
unit costs				2.04	2.42	4.46
Costs to be accounted for
Work in process July 1						1,360
Started into production						5990
Total costs						7,350
Cost Reconcilation Scheule
Cost accounted for
Transferred out						5756
Work in process,July 31
Materials					1080
Conversion costs					514	1594
Total costs						7350