Question

Units Percent Complete 60 % 440 1,120 600 40 % 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 Materials Conversion costs Direct materials Direct labor Manufacturing overhead $780 620 $1,400 2,028 530 1,010

Answer 1

Materials Conversion Costs 1560 1200 Equivalent units Materials Conversion Costs $ 1.80$ 1.80 Cost per unit $ 3,456 Costs accounted for Transferred out Work in process, July 31 Materials Conversion costs Total costs $ 1,080 $ 432 $ $ 1,512 4,968 Working note:

E B C D Equivalent Units Physical Units Materials Conversion Costs 440 1120 1560 960 960 960 600 600 240 1560 1560 1200 Materials Conversion Costs Total A 1 2. Quantities 3 Units to be accounted for 4 Work in process, July 1 5 Started into production 6 Total units 7 Units accounted for 8 Transferred out 9 Work in process, July 31 10 Total units 11 12 Unit costs: 13 Total costs 14 Equivalent units 15 Unit costs 16 Costs to be accounted for 17 Work in process, July 1 18 Started into production 19 Total costs 20 Cost Reconciliation Schedule 21 Costs accounted for 22 Transferred out 23 Work in process, July 31 24 Materials 25 Conversion costs 26 Total costs $ 2,808 $ 1560 $ 1.80 $ 2,160 $4,968 1200 1.80 $ 3.60 $1,400 $3,568 $4,968 $3,456 $ $ 1,080 432 $1,512 $4,968

A E B С D Equivalent Units Physical Units Materials Conversion Costs 2. 440 1120 =+B4+B5 =+B10-B9 600 =+B8*100% =+B8*100% =+B9*100% =+B9*40% =+C8+C9 =+D8+D9 Materials Conversion Costs Total =+B6 =+C13+D13 1 2 Quantities 3 Units to be accounted for 4 Work in process, July 1 5 Started into production 6 Total units 7 Units accounted for 8 Transferred out 9 Work in process, July 31 10 Total units 11 12 Unit costs: 13 Total costs 14 Equivalent units 15 Unit costs 16 Costs to be accounted for 17 Work in process, July 1 18 Started into production 19 Total costs 20 Cost Reconciliation Schedule 21 Costs accounted for 22 Transferred out 23 Work in process, July 31 24 Materials 25 Conversion costs 26 Total costs =780+2028 =620+530+1010 =+C10 =+D10 =+C13/C14 =+D13/D14 =+C15+D15 1400 =2028+530+1010 =+E17+E18 =+B8%E15 =+C9*C15 =+D9*D15 =+D24+D25 =+E22+E25