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		1,000
Work in process units, March 31		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

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		$ 6,125
Direct materials		30,000
Direct labor		14,300
Manufacturing overhead		20,000

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

		Materials		Conversion Costs
Equivalent Units of bicycles
Equivalent Units of tricycles

eTextbook and Media

• eTextbook

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles. (Round unit costs to 3 decimal places, e.g. 25.215.)

		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. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Costs accounted for:
Transferred out		$
Work in process, March 1
Materials	$
Conversion costs
Total costs		$

Tricycles

PLEASE SHOW WORK ON HOW YOU GOT THE ANSWERS, THANK YOU

Answer 1

Calculation of equivalent units of Bicycles using FIFO
	Physical Units	% Complete with respect to Materials costs	Materials EUP	% Complete with respect to Conversion costs	CC EUP
Unit completed out of beginning Inventory	200	0%	0	20%	40
Units completed out of units started	700	100%	700	100%	700
Units in ending Inventory	300	100%	300	40%	120
Equivalent Units			1000		860
Calculation of equivalent units of tricycles using FIFO
	Physical Units	% Complete with respect to Materials costs	Materials EUP	% Complete with respect to Conversion costs	CC EUP
Unit completed out of beginning Inventory	100	0%	0	25%	25
Units completed out of units started	940	100%	940	100%	940
Units in ending Inventory	60	100%	60	25%	15
Equivalent Units			1000		980
Calculation of unit costs of production for materials and conversion costs for both the bicycles
		Materials	Conversion
Cost added during the period		$50,000.00	$55,900.00
/ Equivalent units as per FIFO		1000	860
Cost per equivalent unit		$50.00	$65.00
Calculation of unit costs of production for materials and conversion costs for both the tricycles
		Materials	Conversion
Cost added during the period		$30,000.00	$34,300.00
/ Equivalent units as per FIFO		1000	980
Cost per equivalent unit		$30.00	$35.00
Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles
Bicycles
Cost accounted for
Transferred out
- Beginning Work in process	$19,280.00
- Materials [700 units x $50]	$35,000.00
- Conversion [740 units x $65]	$48,100.00
Total Cost of Transferred out units	$102,380.00
Work in Process , March 31
- Materials [300 units x $50]	$15,000.00
- Conversion [120 units x $65]	$7,800.00
Total Cost of work in process,March 31	$22,800.00
Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the tricycles
tricycles
Cost accounted for
Transferred out
- Beginning Work in process	$6,125.00
- Materials [940 units x $30]	$28,200.00
- Conversion [965 units x $35]	$33,775.00
Total Cost of Transferred out units	$68,100.00
Work in Process , March 31
- Materials [60 units x $30]	$1,800.00
- Conversion [15 units x $35]	$525.00
Total Cost of work in process,March 31	$2,325.00