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Morse Company 500

Price: $2.50


Morse 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 2014 are as follows.


Production Data - Basketballs Units % Complete
Work in process units, July 1  500 60%
Units started into production  1,250
Work in process units, July 31  600 40%
 
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   1,295


Instructions
(a) Calculate the following.
(1) The equivalent units of production for materials and conversion costs.
(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
accounting period.
(b) Prepare a production cost report for the month of July for the basketballs

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