In: Accounting
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.
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Percentage |
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Work in process units, March 1 | 200 | 80 | % | ||
Units started into production | 1,430 | ||||
Work in process units, March 31 | 300 | 40 | % |
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Work in process units, March 1 | $ 19,100 | |
Direct materials | 50,000 | |
Direct labor | 26,100 | |
Manufacturing overhead | 29,700 |
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Percentage |
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Work in process units, March 1 | 140 | 75 | % | ||
Units started into production | 1,000 | ||||
Work in process units, March 31 | 60 | 25 | % |
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Work in process units, March 1 | $ 6,300 | |
Direct materials | 30,200 | |
Direct labor | 14,200 | |
Manufacturing overhead | 19,900 |
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 |
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Equivalent Units of bicycles | ||||
Equivalent Units of tricycles |
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 |
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Unit costs of bicycles | ||||
Unit costs of tricycles |
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: |
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Transferred out |
$ |
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Work in process, March 1 |
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Materials |
$ |
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Conversion costs |
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Total costs |
$ |
Tricycles
Costs accounted for: |
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Transferred out |
$ |
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Work in process, March 1 |
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Materials |
$ |
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Conversion costs |
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Total costs |
$ |
Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)
OWEN COMPANY |
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Equivalent Units |
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Quantities |
Physical |
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Conversion |
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Units to be accounted for |
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Work in process, March 1 |
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Started into production |
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Total units |
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Units accounted for |
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Completed and transferred out |
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Work in process, March 1 |
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Started and completed |
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Work in process, March 31 |
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Total units |
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Conversion |
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Unit costs |
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Costs in March |
$ |
$ |
$ |
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Equivalent units |
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Unit costs |
$ |
$ |
$ |
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Costs to be accounted for |
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Work in process, March 1 |
$ |
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Started into production |
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Total costs |
$ |
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Cost Reconciliation Schedule |
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Costs accounted for |
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Transferred out |
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Work in process, March 1 |
$ |
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Conversion costs to complete beginning inventory |
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Started and completed |
$ |
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Work in process, March 31 |
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Materials |
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Conversion costs |
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Total costs |
$ |