| WileyPLUS Chegg Study | Guided Solutions and Study Help | Chegg.com WileyPLUS:

Question

| WileyPLUS Chegg Study | Guided Solutions and Study Help | Chegg.com WileyPLUS: MyWlleyPLUSI Help | Contact Us I Log Out WileyPLUS Weygandt, Managerial Accounting, 7e ACCT 202 () STANDARD VIEW BACK NEXT ASSIGNMENT RESOURCES Question 1 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. Question 3 Percent Complete 60% Production Data-Basketballs Work in process units, July 1 Units started into production Work in pracess units, July 31 Cost Data-Basketballs Work in process, July 1 Units 580 1,100 560 Obiective 40% Materials $790 Conversion costs Direct materials Direct labor Manufacturing overhead 600 ,390 2,390 2,190 1,190 Calculate the equivalent units of production for materials and conversion costs. Materials Conversion Costs Equivalent Units 1,344 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 1,893 2,961 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 cut 5,43 Work in process, July 31

Explanation / Answer

Part 1)

Materials

Units to be Accounted For

Part 2)

Part 3)

Part 1)

Physical Units Equivalent Units

Materials

Conversion Costs

Units to be Accounted For

Work in Process, July 1 580 Units Started into Production 1,100 Total Units 1,680 Units Accounted For Transferred Out (1,680-560) 1,120 1,120 1,120 Work in Process Units, July 31 560 560 224 Total Units 1,680 1,680 1,344

Part 2)

The unit cost of production for materials and conversion costs is calculated as follows: Material Cost Conversion Cost Opening Work in Process 790 600 Added During the Month 2,390 3380 Total Costs (A) 3,180 3,980 Equivalent Units (B) 1,680 1,344 Cost Per Unit (A/B) $1.89 $2.96

Part 3)

Cost Accounted For Transferred Out (1,120*(1.89+2.96)) 5,432 Work in Process, July 31 Materials (560*1.89) 1058.4 Conversion Costs (224*2.96) 663.04 1,721 Total Costs $7,153 Part 4) The production cost report is given as follows: Basketballs Production Cost Report For the Month Ended July 31st Equivalent Units Units Physical Units Material Conversion Units to be Accounted For Work in Process, July 1 580 Units Started into Production 1,100 Total Units 1,680 Units Accounted For Transferred Out (1,680 – 560) 1,120 1,120 1,120 Work in Process Units, July 31 560 560 224 Total Units 1,680 1,680 1,344 Costs Unit Costs Materials Conversion Total Costs in July 3,180 3,980 $7,160 Equivalent Units 1,680 1,344 Unit Costs 1.892857 2.961309524 Costs to be Accounted For Work in Process, July 1 1390 Started into Production 5770 Total Costs $7,160 Cost Reconciliation Cost Accounted For Transferred Out (1,120*(1.89 + 2.96)) 5,437 Work in Process, July 31 Materials (560*1.89) 1060 Conversion Costs (224*2.96) 663 1,723 Total Costs $7,160

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.