Question

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. Percent Complete Production Data-Basketballs Units Work in process units, July 1 550 60 % Units started into production 1,400 Work in process units, July 31 600 40 % Cost Data-Basketballs Work in process, July 1 Materials $750 Conversion costs 610 $1,360 Direct materials 2,370 Direct labor 654 Manufacturing overhead 1,280

Answer 1

a
1
	Materials	Conversion Costs
Equivalent units	1950	1590
2
	Materials	Conversion Costs
Cost per unit	1.60	1.60
3
Costs accounted for:
Transferred out		4320
Work in process, July 31
Materials	960
Conversion costs	384	1344
Total costs		5664
b
POLK COMPANY
Basketball Department
Production Cost Report
For the Month Ended July 31, 2020
Equivalent Units
Physical Units		Materials	Conversion Costs
Units to be accounted for
Work in process, July 1	550
Started into production	1400
Total units	1950
Units accounted for
Transferred out	1350	1350	1350
Work in process, July 31	600	600	240
Total units	1950	1950	1590
Costs		Materials	Conversion Costs	Total
Unit costs
Total costs		3120	2544	5664
Equivalent units		1950	1590
Unit costs		1.60	1.60	3.20
Costs to be accounted for
Work in process, July 1				1360
Started into production				4304
Total costs				5664
Cost Reconciliation Schedule
Costs accounted for
Transferred out				4320	=1350*3.20
Work in process, July 31
Materials			960		=600*1.60
Conversion costs			384	1344	=240*1.60
Total costs				5664