Question

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows. Percentage Complete 80% Production Data-Bicycles Work in process units, March 1 Units started into production Work in process units, March 31 Units 200 1,000 300 40% Cost Data-Bicycles Work in process units, March 1 $19,280 Direct materials 50,000 Direct labor 25,900 Manufacturing overhead 30,000 Percentage Complete 75 % Production Data-Tricycles Work in process units, March 1 Units started into production Work in process units, March 31 Units 100 1,000 60 25% Cost Data-Tricycles Work in process units, March 1 $6,125 Direct materials 30,000 Direct labor 14,300 Manufacturing overhead 20,000

Answer 1

Answer is given below

Material Conversion Cost Equivalent Units of Bicycles Equivalent Units of Tricycles 1,000 860 1,000 1,000 360 980 Material Conversion Cost $65.00 $35.00 Unit Cost of Bicycles Unit Cost of Tricycles $50.00 $30.00 Bicycles Physical Units % Completed Equivalent Units % Materials Completed Conversion Costs Quantities Units to be accounted for Work-in-process March 1 Started into production Total Units To Account for 200 1,000 1,200 0% Units accounted for Completed and transferred out Work-in-process March 1 Started and completed Work in process March 31 Total Units Accounted for 700 200 700 300 1,200 700 20% 100% 40% 100% 100% 300 120 860 1,000 Unit Cost Analysis Schedule-FIFO Method Materials Conversion Cost Total Costs $50,000 $105,900 Unit Costs Costs in March Equivalent units Cost per equivalent unit (Current period cost /Equivalent units) 1,000 $55,900 860 $65.00 $50.00 $115.00 Note: In FIFO method only current period cost is divided by equivalent units to arrive at cost per equivalent unit Costs to be Accounted for Work-in-process March 1 Started into Production Total Costs $19,280 $105,900 $125,180 $102,380 Costs Accounted for Transferred out Work in process, March 1 Materials Conversion cost Total Costs $15,000 $7,800 $22,800 $125,180 Cost Reconciliation Schedule Cost Accounted for Transferred out Work in process, March 1 Conversion cost to complete Beginning inventory(40*$65) Started and completed (700*$115) $19,280 $2,600 $80,500 $102,380 Work in process Inventory March 31 Materials Conversion cost Total Costs Accounted for $15,000 $7,800 |(300*$50) $22,800 (120*$65) $125,180 Tricycles Physical Units % Completed Equivalent Units % Materials Completed Conversion Costs Quantities Units to be accounted for Work-in-process March 1 Started into production Total Units To Account for 100 1,000 1,100 25 Units accounted for Completed and transferred out Work-in-process March 1 Started and completed Work in process March 31 Total Units Accounted for 100 940 0% 100% 100% 940 25% 100% 25% 940 15 60 60 1,100 1,000 980 Total Costs Unit Cost Analysis Schedule-FIFO Method Conversion Materials | Cost Unit Costs Costs in March $30,000 $34,300 Equivalent units 1,000 980 Cost per equivalent unit (Current period cost /Equivalent units) $30.00 $64,300 st/ Equivalent units$2,000 $25.00 S65.00 Note: In FIFO method only current period cost is divided by equivalent units to arrive at cost per equivalent unit Costs to be Accounted for Work-in-process March 1 Started into Production Total Costs $6,125 $64,300 $70,425 $68,100 Costs Accounted for Transferred out Work in process, March 1 Materials Conversion cost Total Costs $1,800 $525 $2,325 $70,425 Cost Reconciliation Schedule Cost Accounted for Transferred out Work in process , March 1 Conversion cost to complete Beginning inventory(25*$35) Started and completed (940*$65) $6,125 $875 $61,100 $68,100 Work in process Inventory March 31 Materials Conversion cost Total Costs Accounted for $1,800 $525 (60*$30) $2,325 (15*$35) $70,425