Cullumber Company manufactures basketballs. The first step is the production of internal rubber bladders. Materials are added at the neginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the Bladder Department for July 2022 are as follows. Percent Production Data-Basketballs Units Complete Work in process units, July 1 460 60 % Units started into production 1,150 Work in process units, July 31 600 40 % Cost Data-Basketballs Work in process, July 1 Materials $800 Conversion costs 600 $1,400 2,098 Direct materials 200 Direct labor 1,450 Manufacturing overhead
Cullumber Company manufactures basketballs. The first step is the production of internal rubber bladders. Materials are added at the neginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the Bladder Department for July 2022 are as follows. Percent Production Data-Basketballs Units Complete Work in process units, July 1 460 60 % Units started into production 1,150 Work in process units, July 31 600 40 % Cost Data-Basketballs Work in process, July 1 Materials $800 Conversion costs 600 $1,400 2,098 Direct materials 200 Direct labor 1,450 Manufacturing overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you please help me understand how to calculate equivalent units of production for materials and conversion costs?
Transcribed Image Text:Cullumber Company manufactures basketballs. The first step is the production of internal rubber bladders. Materials are added at the
peginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the Bladder
Department for July 2022 are as follows.
Percent
Production Data-Basketballs
Units
Complete
Work in process units, July 1
460
60 %
Units started into production
1,150
Work in process units, July 31
600
40 %
Cost Data-Basketballs
Work in process, July 1
Materials
$800
Conversion costs
600
$1,400
2,098
Direct materials
200
Direct labor
1,450
Manufacturing overhead
W
SONY
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