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| wileyPLUS Accounting question I Chegg.com WileyPLUS: MyWilleyPLUS| Help | Contact Us I Log Out WileyPLUS Weygandt, Managerial Accounting, 7e ACCT 202 () Home Read, Study&Practice; Gradebook ORION CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Question 1 ACCT 202 HW4 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. Percent Complete 60% Production Data-Basketballs Work in process units, July 1 Units started into production Work in process units, July 31 Cost Data-Basketballs Work in process, July 1 Units Review Score Review Results by Study Objective 400 1,090 540 40% Materials $760 Conversion costs Direct materials Direct labor Manufacturing overhead 590 $1,350 2,630 1,590 1,110 Calculate the equivalent units of production for materials and conversion costs. Materials Conversion Costs Equivalent Units 1,490 1,166 Calculate the unit costs of production for mateials and conversion costs. (Round unit costs to 3 decimal places, e.g. 2.257.,) Version 4.24.5.1

Explanation / Answer

Part 1)

Materials

Units to be Accounted For

Part 2)

Part 3)

Materials

Units to be Accounted For

Part 1)

Physical Units Equivalent Units

Materials

Conversion Costs

Units to be Accounted For

Work in Process, July 1 400 Units Started into Production 1,090 Total Units 1,490 Units Accounted For Transferred Out (1,490-540) 950 950 950 Work in Process Units, July 31 540 540 216 Total Units 1,490 1,490 1,166

Part 2)

The unit cost of production for materials and conversion costs is calculated as follows: Material Cost Conversion Cost Opening Work in Process 760 590 Added During the Month 2,630 2700 Total Costs (A) 3,390 3,290 Equivalent Units (B) 1,490 1,166 Cost Per Unit (A/B) $2.28 $2.82

Part 3)

Cost Accounted For Transferred Out (950*(2.28+2.21)) 4,842 Work in Process, July 31 Materials (540*2.28) $1,231.20 Conversion Costs (216*2.82) $609.47 1,841 Total Costs $6,683 Part 4) The production cost report is given as follows: Basketballs Production Cost Report For the Month Ended July 31st Equivalent Units Physical Units Equivalent Units

Materials

Conversion Costs

Units to be Accounted For

Work in Process, July 1 400 Units Started into Production 1,090 Total Units 1,490 Units Accounted For Transferred Out (1,490-540) 950 950 950 Work in Process Units, July 31 540 540 216 Total Units 1,490 1,490 1,166 Costs Unit Costs Materials Conversion Total Costs in July 3,390 3,290 $6,680 Equivalent Units 1,490 1,166 Unit Costs 2.275168 2.82161235 Costs to be Accounted For Work in Process, July 1 1350 Started into Production 5330 Total Costs $6,680 Cost Reconciliation Cost Accounted For Transferred Out (1,120*(1.89 + 2.96)) 4,842 Work in Process, July 31 Materials (540*2.275168) 1229 Conversion Costs (216*2.821612350) 609 1,838 Total Costs $6,680

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