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Problem - Chen 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 2010 are as follows.
Production Data-Basketballs
Units
Percent Complete
Work in process units, July 1
590
60%
Units started into production
1,060
Work in process units, July 31
750
40%
Cost Data - Basketballs
Work in process, July 1
Materials
$757
Conversion costs
548
$1,305
Direct materials
2,873
Direct labor
1,727
Manufacturing overhead
1,325
Calculate the following.
1. The equivalent units of production for materials and conversion.
2. The unit costs of production for materials and conversion costs.
3. The assignment of costs to units transferred out and in process at the end of the period.
Complete the production cost report for the month of July for the basketballs.
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