Crane 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 |
|
|
|
400 |
|
60 |
% |
| Units started into production |
|
|
|
1,000 |
|
|
|
| Work in process units, July 31 |
|
|
|
500 |
|
40 |
% |
Cost Data—Basketballs
|
|
|
|
|
|
| Work in process, July 1 |
|
|
|
|
|
|
|
| Materials |
|
$700 |
|
|
|
|
|
| Conversion costs |
|
550
|
|
$1,250 |
|
|
|
| Direct materials |
|
|
|
1,960 |
|
|
|
| Direct labor |
|
|
|
1,200 |
|
|
|
| Manufacturing overhead |
|
|
|
1,000 |
|
|
Calculate the equivalent units of production for materials and
conversion costs.
|
|
Materials
|
|
Conversion Costs
|
| Equivalent Units |
|
 1400
|
|
1100
|
alculate the unit costs of production for materials and
conversion costs.
(Round unit costs to 2 decimal
places, e.g. 2.25.)
|
|
Materials
|
|
Conversion Costs
|
| Cost per unit |
|
$
1.9
|
|
$
2.5
|
Calculate the assignment of costs to units transferred out and
in process at the end of the accounting period.
Costs accounted for:
|
|
|
Transferred out
|
|
$
|
Work in process, July 31
|
|
|
