Fong Company manufactures basketballs. Materials are added at the beginning of t
ID: 2352904 • Letter: F
Question
Fong 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 2012 are as follows.Production Data-Basketballs Units Percent
Complete
Work in process units, July 1 390 60%
Units started into production 1,480
Work in process units, July 31 580 30%
Cost Data - Basketballs
Work in process, July 1
Materials $719
Conversion costs 507
$1,226
Direct materials 3,582
Direct labor 1,616
Manufacturing overhead 3,733
Calculate the following. (Round cost per unit to 2 decimal places, e.g. 10.50. Round other answers to 0 decimal places, e.g. 125.)
1.The equivalent units of production for materials and conversion.
Materials ___________
Conversion costs________
2.The unit costs of production for materials and conversion costs.
Unit cost-Materials $ _____
Unit cost-Conversion costs $ _____
3.The assignment of costs to units transferred out and in process at the end of the period.
Costs accounted for
Transferred out $ ________
Work in process, July 31 Materials _______
Conversion costs _____ _______
Total costs $______
Complete the production cost report for the month of July for the basketballs.
FONG COMPANY
Basketball Department
Production Cost Report
For the Month Ended July 31, 2012
Equivalent Units
Quantities Physical Units Materials Conversion Costs
Units to be accounted for
Work in process, July 1 ___________
Started into production ____________
Total units ___________
Units accounted for __________ _________ _________
Transferred out
Work in process, July 31 __________ _________ _________
Total units _________ _________ ________
Costs Materials Conversion Costs total
Unit costs
Costs in July $_____ $________ $_______
Equivalent units _____ ______
Unit costs $______ $______
Cost to be accounted for
Work in process, July 1 $____
Started into production ______
Total costs $________
Cost Reconciliation Schedule
Costs accounted for
Transferred out $ __________
Work in process, July 31
Materials $________
Conversion costs _________ _______
Total costs $________
Explanation / Answer
Beg WIP 685 + Started 1370 Accounted for 2055 Equiv Units Material Conversion Complete 1233 1233 1233 End WIP 822 822 246.6 Accounted for 2055 2055 1479.6 Material Conversion Costs Beg WIP 1850 1028 822 Current 7303 5453 1850 Account for 9153 6481 2672 2055 1479.6 = 3.15 1.81 Completed 1233 (3.15+1.81) = 6115.68 End WIP Mat 822*3.15 = 2589.3 Conver 246.6*1.81 = 446.35 Total WIP = 3035.65