Problem 175A Part Level Submission Polk Company manufactures

*Problem 17-5A (Part Level Submission) 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 Com Production Data-Basketballs Work in process units, July l Units started into production Work in process units, July 31 Cost Data-Basketballs Work in process, July 1 Units 60 % 1,330 540 40 % $750 Materials Conversion costs 550 $1,400 2,030 1,260 1,280 Direct materials Direct labor (a1) Your answer is correct. Calculate the equivalent units of production for materials and conversion costs. Materials Conversion Costs Equivalent Units Attempts: 1 of 3 used (a2) Your answer is correct. 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 Attempts: 2 of 3 used (a3) Your answer is correct. Calculate the assignment of costs to units transferred out and in process at the end of the accounting period. (Round answers to O decimal places, e.g. 2,250.) Costs accounted for: Transferred out 661 Work in process, July 31 Materials Conversion costs Total costs Attempts: 1 of 3 used

Solution

Production cost report :

		Equivalent unit
	Physical unit	Material	Conversion Cost
Units to be accounted for
Work in process July 1	460
Unit started	1330
Total units	1790
Units accounted for
Transferred out	1250	1250	1250
Work in process, July 31	540	540	216
Total units	1790	1790	1466
Costs		Material	Conversion cost	Total
Cost in july		2780	3190	5970
Equivalent unit		1790	1466
Unit cost		1.553	2.176	3.729
Cost to be accounted for
Work in process, July 1				1400
Started into production				4570
Total cost				5970
Cost reconciliation schedule
Transferred out				4661
Work in process, July 31
Materials			839
Conversion cost			470	1309
Total costs				5970