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Sassy Cotton Co. produces fine cotton fabrics. The cotton is processed and finished before being shipped out to clothing companies. Material is added in the beginning of processing, and conversion costs are added evenly through-out processing.At the beginning of July, Sassy had 7,000 units in process that were 100 percent complete as to materials and 40 percent complete as to labor and overhead. The company started 31,000 units into production during the month of July. At the end of July, 6,000 units were in ending Work in Process inventory and were 60 percent complete as to
conversion costs. Cost data are as follows:
Beginning work in process:Direct materials.........$7,500Direct labor.........$3,400Manufacturing overhead....$2,200Costs added during July:Direct materials.........$33,160Direct labor.........$10,484Manufacturing overhead....$17,024
Required:
Prepare a production cost report for the month of July.
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