Question

Problem 17-7A (Part Level Submission) 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 80 % Production Data-BicyclesUnitsComplete Work in process units, March 1 Units started into production Work in process units, March 31 200 1,000 300 40 % Cost Data-Bicycles Work in process units, March 1 Direct materials Direct labor Manufacturing overhead $19,280 50,000 25,900 30,000 Percentage Complete 75 % Production Data-Tricycles Units Work in process units, March 1 Units started into production Work in process units, March 31 100 1,000 60 25 % Cost Data-Tricycles Work in process units, March 1 Direct materials Direct labor Manufacturing overhead $6,125 30,000 14,300 20,000

Answer 1

OWEN COMPANY
Production cost report - Bycycle
For the month ended March 31
		Equivalent units
Quantities	Physical units	Material	Conversion costs
Units to be accounted for;
Work in process, March 1	200
Started into production	1,000
Total units	1,200
Units accounted for ;
Completed and transferred out
Work in process, March 1	200	-	40
Started and completed	700	700	700
Work in process, March 31	300	300	120
Total units	1,200	1,000	860
Costs	Material costs	Conversion costs	Total
Costa in March	50,000	55,900	105,900
Equivalent units	1,000	860
Unit cost ( $ )	50	65	115
Costs to be accounted for;
Work in process, March 1	19,280
Started into production	105,900
Total cost	125,180
Cost reconciliation schedule;
Costs accounted for;	$	$
Transferred out-
Work in process, March 1	19,280
Conversion cost to complete beginning inventory	2,600
Started and completed	80,500	102,380
Work in process, March 31;
Materials	15,000
Conversion costs	7,800	22,800
Total costs		125,180