ACC 560 Week 2 Assignment
P3-5A Chen 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 2008 are as follows.
Production Data-Basketballs Units Percent Complete
Work in process units, July 1 500 60%
Units started into production 1,000
Work in process units, July 31 600 30%
Cost Data - Basketballs
Work in process, July 1
Materials $750
Conversion costs 600 $1,350
Direct materials 2,400
Direct labor 1,580
Manufacturing overhead 1,060
a. Calculate the following.
1. The equivalent units of production for materials and conversion.
2. The unit costs of production for materials and conversion costs.
3. The assignment of costs to units transferred out and in process at the end of the period.
b. Complete the production cost report for the month of July for the basketballs
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