Question

Coronado 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				560		60	%
Units started into production				1,430
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				2,882
Direct labor				1,072
Manufacturing overhead				1,420

Calculate the equivalent units of production for materials and conversion costs.

		Materials		Conversion Costs
Equivalent Units		enter a number of units		enter a number of units

  

  

Calculate 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		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places

  

  

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period.

Costs accounted for:
Transferred out		$enter a dollar amount
Work in process, July 31
Materials	$enter a dollar amount
Conversion costs	enter a dollar amount	enter a subtotal of the two previous amounts
Total costs		$enter a total amount

  

  

Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 2,250.)

CORONADO COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2020
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, July 1		enter a number of units
Started into production		enter a number of units
Total units		enter a total number of units
Units accounted for
Transferred out		enter a number of units		enter a number of units		enter a number of units
Work in process, July 31		enter a number of units		enter a number of units		enter a number of units
Total units		enter a total number of units		enter a total number of units		enter a total number of units
Costs				Materials		Conversion Costs		Total
Unit costs
Total costs				$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places
Equivalent units				enter a number of units		enter a number of units
Unit costs				$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places
Costs to be accounted for
Work in process, July 1								$enter a dollar amount rounded to 0 decimal places
Started into production								enter a dollar amount rounded to 0 decimal places
Total costs								$enter a total of the two previous amounts
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$enter a dollar amount rounded to 0 decimal places
Work in process, July 31
Materials						$enter a dollar amount rounded to 0 decimal places
Conversion costs						enter a dollar amount rounded to 0 decimal places		enter a subtotal of the two previous amounts
Total costs

Answer 1

1)	Equivalent units of production for materials and conversion costs
			Materials	Conversion
	Equivalent units		1990	1690

2)	Unit costs of production for materials and conversion costs
			Materials	Conversion
	Cost per unit		$      1.80	$      1.80

3)	Assignment of costs to units transferred out and in process at the end of the accounting period
	Costs accounted for:
	Transferred out				$ 5,364.00
	Work in process, July 31
	Materials			$ 900.00
	Conversion costs			$ 360.00	$ 1,260.00
	Total costs				$ 6,624.00

4)			Production Cost Report
			Equivalent Units
		Physical		Conversion
	Quantities	Units	Materials	Costs
	Units to be
	accounted for
	WIP, July 1	560
	Started into	1430
	production
	Total Units	1990
	Units accounted
	for
	Transferred Out	1490	1490	1490
	WIP, July 31	500	500	200
	Total Units	1990	1990	1690

		Conversion
Costs	Materials	Costs	Total
Unit Costs
Total Costs	$     3,582.00	$     3,042.00
Equivalent Units	1990	1690
Unit Costs	$             1.80	$             1.80	$              3.60
Costs to be
accounted for
WIP, July 1	$        700.00	$        550.00	$      1,250.00
Started into	$     2,882.00	$     2,492.00	$      5,374.00
production
Total			$      6,624.00
Costs accounted
for
Transferred Out			$      5,364.00
WIP, July 31
Materials		$        900.00
Conversion		$        360.00	$      1,260.00
Total			$      6,624.00