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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.
Production Data-Basketballs
Units
Percent Complete
Work in process units, July 1
460
60%
Units started into production
1,330
Work in process units, July 31
500
40%
Cost Data-Basketballs
Work in process, July 1
Materials
$750
Conversion costs
650
$1,400
Direct materials
2,114
Direct labor
454
Manufacturing overhead
1,280
Required -
Calculate the equivalent units of production for materials and conversion costs.
Calculate the unit costs of production for materials and conversion costs.
Calculate the assignment of costs to units transferred out and in process at the end of the accounting period.
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