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.

Production Data—Bicycles		Units		Percentage Complete
Work in process units, March 1		200		80	%
Units started into production		1,440
Work in process units, March 31		300		40	%

Cost Data—Bicycles
Work in process units, March 1		$19,130
Direct materials		48,960
Direct labor		26,000
Manufacturing overhead		29,900

Production Data—Tricycles		Units		Percentage Complete
Work in process units, March 1		100		75	%
Units started into production		1,000
Work in process units, March 31		60		25	%

Cost Data—Tricycles
Work in process units, March 1		$6,120
Direct materials		30,000
Direct labor		14,500
Manufacturing overhead		19,800

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

		Materials		Conversion Costs
Equivalent Units of bicycles
Equivalent Units of tricycles

eTextbook and Media

  

  

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.

		Materials		Conversion Costs
Unit costs of bicycles
Unit costs of tricycles

eTextbook and Media

  

  

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

Bicycles

Costs accounted for:
Transferred out		$
Work in process, March 31
Materials	$
Conversion costs
Total costs		$

Tricycles

Costs accounted for:
Transferred out		$
Work in process, March 31
Materials	$
Conversion costs
Total costs		$

eTextbook and Media

  

  

Prepare a production cost report for the month of March for the bicycles only.

OWEN COMPANY Production Cost Report—Bicycles For the Month Ended March 31
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, March 1
Started into production
Total units
Units accounted for
Completed and transferred out
Work in process, March 1
Started and completed
Work in process, March 31
Total units
Costs		Materials		Conversion Costs		Total
Unit costs
Costs in March		$		$		$
Equivalent units
Unit costs		$		$		$
Costs to be accounted for
Work in process, March 1				$
Started into production
Total costs				$
Cost Reconciliation Schedule
Costs accounted for
Transferred out
Work in process, March 1		$
Conversion costs to complete beginning inventory
Started and completed				$
Work in process, March 31
Materials
Conversion costs
Total costs				$

Answer 1

XI - Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View V O A1 A B C E F Н. 1 2 3 D OWEN COMPANY WORKINGS AS PER FIFO METHOD BICYCLE PRODUCTION COST REPORT FOR THE MONTH ENDED MARCH 31 4 % of Completion FOR MATERIALS % Completed Equivalent Units 100% 200.00 Units FOR CONVERSION COST % Completed Equivalent Units 80% 160.00 200 1,440 1,640 200 1,140 300 1,640 0% 100% 100% 100% 1,140.00 300.00 1,440.00 20% 100% 40% 100% 40.00 1,140.00 120.00 1,300.00 5 6 Statement of Equivalent Unit 7 8 Units Introduced 9 Beginning Inventory 10 Total Units Introduced (Bal Fig) 11 Units to Account for 12 Further Processed & Transferred 13 From Beginning Inventory 14 From Current Year Input (1,640-200-300) 15 Ending Inventory 16 Total Units Accounted for 17 18 Calculation of Cost per Unit : 19 COST OF MATERIALS 20 Cost in March $ 21 / No. of Equivalent Units 22 Cost of Materials per unit $ 23 CONVERSION COST 24 Cost in March $ 25 / No. of Equivalent Units 26 Conversion cost per unit $ 27 TOTAL COST 28 Cost in March $ 29 Cost Per Unit $ KONSheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Ready ($) 48,960.00 1,440.00 34.00 $ 19,130.00 Cost Accounted For : For Transferred Out : Beginning Inventory Direct Materials Conversion Cost Cost of Units Transferred Out $ 38,760.00 $ 50,740.00 $ $ 89,500.00 108,630.00 55,900.00 1,300.00 43.00 Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out Sheet37 $ 10,200.00 $ 5,160.00 104,860.00 77.00 Sheet34 Sheet35 $ $ 15,360.00 123,990.00 Sheet36 BO 100% - 6:24 AM 23-Sep-20

х X 95 Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ X Page Layout foc A59 A B C E F Н. 31 32 D OWEN COMPANY WORKINGS AS PER FIFO METHOD TRICYCLE PRODUCTION COST REPORT FOR THE MONTH ENDED MARCH 31 33 34 35 36 Statement of Equivalent Unit 37 % of Completion FOR MATERIALS % Completed Equivalent Units 100% 100.00 38 Units FOR CONVERSION COST % Completed Equivalent Units 75% 75.00 39 40 100 1,000 1,100 41 42 Units Introduced Beginning Inventory Total Units Introduced (Bal Fig) Units to Account for Further Processed & Transferred From Beginning Inventory From Current Year Input (1,100-100-60) Ending Inventory Total Units Accounted for 43 44 100 940 60 1,100 0% 100% 100% 100% 25% 100% 25% 100% 940.00 60.00 1,000.00 25.00 940.00 15.00 980.00 45 46 47 48 49 50 ($) 30,000.00 1,000.00 30.00 51 $ 6,120.00 Cost Accounted For : For Transferred Out : Beginning Inventory Direct Materials Conversion Cost Cost of Units Transferred Out 52 $ 28,200.00 $ 33,775.00 53 Calculation of Cost per Unit : COST OF MATERIALS Cost in March $ / No. of Equivalent Units Cost of Materials per unit $ CONVERSION COST Cost in March $ / No. of Equivalent Units Conversion cost per unit $ TOTAL COST Cost in March $ Cost per unit $ » Sheet28 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 $ $ 61,975.00 68,095.00 54 55 34,300.00 980.00 35.00 56 57 $ 1,800.00 $ 525.00 58 Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out Sheet37 64,300.00 65.00 $ $ 2,325.00 70,420.00 59 Sheet34 Sheet35 Sheet36 Ready HE 100% 6:25 AM 23-Sep-20

2-- х Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ O X Page Layout foc A88 A B с D E F Н. 60 61 Equivalent Units of Production : 62 63 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials 1,440.00 1,000.00 Conversion Cost 1,300.00 980.00 64 65 66 Units Cost of Production : 67 Conversion Cost 68 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials 34.00 30.00 43.00 35.00 69 70 71 Tricycles Bicycles $ 72 108,630.00 $ 68,095.00 73 Cost Accounted For : Transferred Out Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out 74 $ $ 75 10,200.00 5,160.00 $ $ $ 15,360.00 $ 123,990.00 1,800.00 525.00 $ 2,325.00 $ 70,420.00 76 77 Bicycles Tricycles 78 79 80 $ 81 Cost Reconciliation Schedule : Transferred Out : Work in Process, March 1 $ Conversion Cost to Complete Beginning Invel $ Started and Completed $ Work in Process, March 31 Materials $ Conversion Cost $ 19,130.00 1,720.00 87,780.00 $ 6,120.00 875.00 61,100.00 $ 68,095.00 82 108,630.00 $ 83 84 10,200.00 5,160.00 1,800.00 525.00 85 $ 15,360.00 $ 123,990.00 $ $ 2,325.00 $ 70,420.00 86 $ 87 88 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 Sheet35 Sheet36 Sheet37 KI Ready BOM 100% - 6:25 AM 23-Sep-20

Formula Sheet :

х ♡ X X F G H FOR CONVERSION COST % Completed Equivalent Units 0.8 =+C9*F9 XI - Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View A1 for A B с D E 1 OWEN COMPANY 2 WORKINGS AS PER FIFO METHOD 3 BICYCLE PRODUCTION COST REPORT 4 FOR THE MONTH ENDED MARCH 31 5 6 Statement of Equivalent Unit % of Completion 7 FOR MATERIALS 8 Units Introduced Units % Completed Equivalent Units 9 Beginning Inventory 200 1 =+C9*D9 10 Total Units Introduced (Bal Fig) 1440 11 Units to Account for =SUM(C9:010) 12 Further Processed & Transferred 13 From Beginning Inventory =+C9 0 =+C13*D13 14 From Current Year Input (1,640-200-300) =+C16-C13-C15 1 =+C14*D14 15 Ending Inventory 300 1 =+C15*D15 16 Total Units Accounted for =+C11 1 =SUM(E13: E15) 17 18 Calculation of Cost per Unit : 19 COST OF MATERIALS ($) Cost Accounted For : 20 Cost in March For Transferred Out : 21 / No. of Equivalent Units =+E16 Beginning Inventory 22 Cost of Materials per unit =+C20/C21 Direct Materials 23 CONVERSION COST Conversion Cost 24 Cost in March = 26000+29900 Cost of Units Transferred Out 25 / No. of Equivalent Units =+G16 26 Conversion cost per unit =+C24/C25 Work - in - Process : 27 TOTAL COST Direct Materials 28 Cost in March =+C20+C24 Conversion Cost 29 Cost Per Unit =+C22+C26 Cost of Units Transferred Out K™ Sheet28 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 Sheet35 Sheet36 Sheet37 Ready =100%-F9 1 0.4 =+C13*F13 =+C14*F14 +15*F15 =SUM(G13: G15) 1 48960 19130 =+E14%C22 =+(G14+G13)*C26 =SUM(F22:F23) =SUM(G21:G23) =+C22*E15 =+C26*G15 =SUM(F27:F28) ESUM(G24:628) BO 100% - 6:27 AM 23-Sep-20

х ♡ X F G H FOR CONVERSION COST % Completed Equivalent Units 0.75 =+C39*F39 95 Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View A59 for A B с D E 31 OWEN COMPANY 32 WORKINGS AS PER FIFO METHOD 33 TRICYCLE PRODUCTION COST REPORT 34 FOR THE MONTH ENDED MARCH 31 35 36 Statement of Equivalent Unit % of Completion 37 FOR MATERIALS 38 Units Introduced Units % Completed Equivalent Units 39 Beginning Inventory 100 1 =+C39*D39 40 Total Units Introduced (Bal Fig) 1000 41 Units to Account for ESUM(C39:040) 42 Further Processed & Transferred 43 From Beginning Inventory =+C39 0 =+C43*D43 44 From Current Year Input (1,100-100-60) =+C46-C43-C45 1 =+C44*D44 45 Ending Inventory 60 1 =+C45*D45 46 Total Units Accounted for =+C41 1 =SUM(E43: E45) 47 48 Calculation of Cost per Unit : 49 COST OF MATERIALS ($) Cost Accounted For : 50 Cost in March 30000 For Transferred Out : 51 / No. of Equivalent Units =+E46 Beginning Inventory 52 Cost of Materials per unit =+C50/C51 Direct Materials 53 CONVERSION COST Conversion Cost 54 Cost in March =14500+19800 Cost of Units Transferred Out 55 / No. of Equivalent Units =+G46 56 Conversion cost per unit =+C54/C55 Work - in - Process : 57 TOTAL COST Direct Materials 58 Cost in March =+C50+C54 Conversion Cost 59 Cost per unit =+C52+C56 Cost of Units Transferred Out HSheet28 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 Sheet35 Sheet36 Sheet37 Ready = 100%-F39 1 0.25 =+C43*F43 =+C44*F44 =+C45*F45 =SUM(G43: G45) 1 6120 =+E44*C52 =+(G44+G43)*C56 =SUM(F52:F53) =SUM(G51:653) =+C52*E45 =+C56*G45 =SUM(F57:F58) =SUM(G54:658) BO 100% - 6:28 AM 23-Sep-20

х X- Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ X Page Layout foc A88 A B C D E F G H 60 61 Equivalent Units of Production : 62 Conversion Cost 63 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials =+E16 =+E46 =+G16 =+G46 64 65 66 Units Cost of Production : 67 Conversion Cost 68 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials =+C22 =+C52 =+C26 =+C56 69 70 71 Bicycles =+G24 Tricycles 72 =+G54 73 Cost Accounted For: Transferred Out Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out 74 =+F27 =+F28 75 =+F57 =SUM(C74:C75) =+F58 ESUM(D72:D75) =SUM(E74:E75) =SUM(F72: F75) 76 77 78 Bicycles Tricycles 79 80 81 Cost Reconciliation Schedule : Transferred Out : Work in Process, March 1 Conversion Cost to Complete Beginning Inventory Started and Completed Work in Process, March 31 Materials Conversion Cost =+G21 =+G51 =+G13*C26 =+G43*C56 =+C14* (C22+C26) =SUM(C80:C82) =+C44* (C52+C56) 82 =SUM(E80:E82) 83 84 =+C74 =+C75 85 =+E74 =SUM(C84:C85) =+F58 =SUM(D82:085) =SUM(E84: E85) =SUM(F82: F85) 86 87 88 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Sheet34 Sheet35 Sheet36 Sheet37 Ready BO 100% 6:29 AM 23-Sep-20

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