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. Units 210 Percentage Complete 80 % Production Data-Bicycles Work in process units, March 1 Units started into production Work in process units, March 31 1.270 300 40 % Cost Data-Bicycles Work in process units, March 1 Direct materials Direct labor Manufacturing overhead $19,290 50,800 26,300 29,168 Units Percentage Complete 75 % Production Data-Tricycles Work in process units, March 1 Units started into production Work in process units, March 31 120 990 60 25 % $6,300 Cost Data-Tricycles Work in process units, March 1 Direct materials Direct labor Manufacturing overhead 30.690 14,500 19.625 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 e Textbook and Media

Answer 1

X- Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View A59 А B C E F Н. 31 32 33 34 35 36 37 D OWEN COMPANY WORKINGS AS PER FIFO METHOD TRICYCLE PRODUCTION COST REPORT FOR THE MONTH ENDED MARCH 31 Statement of Equivalent Unit % of Completion FOR MATERIALS % Completed Equivalent Units 100% 120.00 Units 38 39 FOR CONVERSION COST % Completed Equivalent Units 75% 90.00 40 120 990 1,110 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 (1,110 - 120 - 60) Ending Inventory Total Units Accounted for 43 44 120 930 60 1,110 0% 100% 100% 100% 25% 100% 25% 100% 930.00 60.00 990.00 30.00 930.00 15.00 975.00 45 46 47 48 49 50 51 ($) 30,690.00 990.00 31.00 $ 6,300.00 Cost Accounted For : For Transferred Out : Beginning Inventory Direct Materials Conversion Cost Cost of Units Transferred Out 52 $ 28,830.00 $ 33,600.00 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 $ Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 53 54 55 56 $ $ 62,430.00 68,730.00 34,125.00 975.00 35.00 57 $ $ Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out Sheet32 Sheet33 1,860.00 525.00 58 64,815.00 66.00 $ $ 2,385.00 71,115.00 59 Sheet30 Sheet31 Ready BO 100% - 1:28 AM 23-Sep-20

х 9 Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View V Page Layout foc A88 A B C D E F H 60 61 Equivalent Units of Production : 62 63 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials 1,270.00 990.00 Conversion Cost 1,132.00 975.00 64 65 66 Units Cost of Production : 67 Conversion Cost 68 Equivalent Units of Bicycles Equivalent Units of Tricycles Materials 40.00 31.00 49.00 35.00 69 70 71 Tricycles Bicycles $ 72 107,678.00 $ 68,730.00 73 Cost Accounted For : Transferred Out Work - in - Process : Direct Materials Conversion Cost Cost of Units Transferred Out 74 $ $ 75 12,000.00 5,880.00 $ $ $ 17,880.00 $ 125,558.00 1,860.00 525.00 $ 2,385.00 $ 71,115.00 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, 290.00 2,058.00 86,330.00 $ $ $ 107,678.00 $ 6,300.00 1,050.00 61,380.00 $ 68,730.00 82 83 84 12,000.00 5,880.00 1,860.00 525.00 85 $ 17,880.00 $ 125,558.00 $ $ $ 2,385.00 $ 71,115.00 86 87 88 KI Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Ready BO! 100% 1:28 AM 23-Sep-20

FORMULA SHEET :

XI. х Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View ♡ A1 F G H FOR CONVERSION COST % Completed Equivalent Units 0.8 =+C9*F9 =100%-F9 1 0.4 A B с C 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 210 1 =+C9*D9 10 Total Units Introduced (Bal Fig) 1270 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 (1,480 - 210 - 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 50800 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 = 26300+29168 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 HSheet24 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Ready =+C13*F13 =+C14*F14 +15*F15 =SUM(G13: G15) 1 19290 =+E14%C22 =+(G14+G13) *C26 =SUM(F22:F23) =SUM(G21:G23) =+C22*E15 =+C26*G15 =SUM(F27:F28) =SUM(G24:628) BOI 100% - 1:29 AM 23-Sep-20

х X- Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View ♡ A59 F G H FOR CONVERSION COST % Completed Equivalent Units 0.75 =+C39*F39 = 100%-F39 1 0.25 A B с C 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 120 1 =+C39*D39 40 Total Units Introduced (Bal Fig) 990 41 Units to Account for =SUM(C39:040) 42 Further Processed & Transferred 43 From Beginning Inventory =+C39 0 =+C43*D43 44 From Current Year Input (1,110 - 120 - 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 30690 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+19625 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 KONSheet24 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Ready =+C43*F43 =+C44*F44 =+C45*F45 =SUM(G43: G45) 1 6300 =+E44*C52 =+(G44+G43)*C56 =SUM(F52:F53) ESUM(G51:653) =+C52%E45 =+C56*G45 =SUM(F57:F58) =SUM(G54:658) BOI 100% - 1:29 AM 23-Sep-20

х 9 Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ 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 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Sheet33 Ready BO 100% 1:30 AM 23-Sep-20

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