Polk Company manufactures basketballs. Materials are added at the beginning of t
ID: 2565739 • Letter: P
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 2017 are as follows. Production Data—Basketballs Units Percent Complete Work in process units, July 1 500 60 % Units started into production 1,320 Work in process units, July 31 510 40 % Cost Data—Basketballs Work in process, July 1 Materials $740 Conversion costs 640 $1,380 Direct materials 2,000 Direct labor 1,910 Manufacturing overhead 1,260 Incorrect answer. Your answer is incorrect. Try again. Calculate the equivalent units of production for materials and conversion costs. Materials Conversion Costs Equivalent Units Entry field with incorrect answer now contains modified data Entry field with incorrect answer LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Calculate the unit costs of production for materials and conversion costs. (Round unit costs to 3 decimal places, e.g. 2.257.) Materials Conversion Costs Cost per unit $Entry field with incorrect answer $Entry field with incorrect answer LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Calculate the assignment of costs to units transferred out and in process at the end of the accounting period. (Round answers to 0 decimal places, e.g. 2,250.) Costs accounted for: Transferred out $Entry field with incorrect answer now contains modified data Work in process, July 31 Materials $Entry field with incorrect answer now contains modified data Conversion costs Entry field with incorrect answer now contains modified data Entry field with incorrect answer Total costs $Entry field with incorrect answer now contains modified data LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 3 decimal places, e.g. 2.257 and all other answers to 0 decimal places, e.g. 2,250.) POLK COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2017 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, July 1 Entry field with incorrect answer Started into production Entry field with incorrect answer Total units Entry field with incorrect answer Units accounted for Transferred out Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Work in process, July 31 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Total units Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Costs Materials Conversion Costs Total Unit costs Costs in July $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Equivalent units Entry field with incorrect answer Entry field with incorrect answer Unit costs $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Costs to be accounted for Work in process, July 1 $Entry field with incorrect answer Started into production Entry field with incorrect answer Total costs $Entry field with incorrect answer Cost Reconciliation Schedule Costs accounted for Transferred out $Entry field with incorrect answer Work in process, July 31 Materials $Entry field with incorrect answer Conversion costs Entry field with incorrect answer Entry field with incorrect answer Total costs
Explanation / Answer
Reconciliation of units Beginning work in process inventory 500 Started in the month 1320 Unit to be accounted 1820 Accounted by Finished from opening Work in process 500 Started and finished (balancing ) 810 Ending work in process inventory 510 1820 Calculation of equivalent units Direct material Conversion Units % Eq.Units % Eq.Units Beginning Work in process inventory 500 0 0 40% 200 Started and finished 810 100% 810 100% 810 Ending work in process inventory 510 100% 510 40% 204 Total equivalent units completed 1320 1214 Direct Conversion Total Material Costs incurred during the month 2000 3170 5170 Equivalent units for the month 1320 1214 Cost per equivalnet unit of production 1.52 2.61 Cost allocation Material Conversion Total Finished and transferred a.Cost of inventory started and finished Equivalent units of inventory started and finished 810 810 Cost per equivalent unit 1.52 2.61 Cost of inventory started and finished 1225 2115 3340 b.Cost of inventory of beginning work in process Equivalent units of completed beginning inventory of Work in process 0 200 Cost per equivalent unit 1.52 2.61 Cost of inventory completed from beginning inventory 0 522 522 Total cost allocated to inventory finished and transferred 1225 2637 3863 Ending work in process Equivalent units of ending work in process inventory 510 204 Cost per equivalent unit 1.52 2.61 Cost of inventory started and finished 775 532 1308 Total cost of production allocated 2000 3170 5170 Valuation of finished goods inentory Material Conversion Total Cost of opening work in process inventory 740 640 1380 Cost allocated during the month 1225 2637 3863 Value of finished goods 1965 3277 5243 Value of finished goods per unit 4.00