Question
In: Accounting
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of...
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 | 1,310 | ||||
| Work in process units, March 31 | 290 | 40 | % | ||
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| Work in process units, March 1 | $19,030 | |
| Direct materials | 49,780 | |
| Direct labor | 26,200 | |
| Manufacturing overhead | 30,248 |
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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 | $6,190 | |
| Direct materials | 30,000 | |
| Direct labor | 14,100 | |
| Manufacturing overhead | 19,560 |
Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.
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Materials |
Conversion Costs |
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| 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.
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Materials |
Conversion Costs |
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| 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
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Costs accounted for: |
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Transferred out |
$ |
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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 |
$ |
Tricycles
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Costs accounted for: |
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Transferred out |
$ |
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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 |
$ |
eTextbook and Media
Prepare a production cost report for the month of March for the
bicycles only.
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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 |
$ |
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Solutions
Expert Solution
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| Final Answer | ||
| Equivalent units of production | Bicycles | Tricycles |
| Materials | 1,310.00 | 1,000.00 |
| Conversion | 1,176.00 | 990.00 |
| Unit costs of production | Bicycles | Tricycles |
| Materials | 38.00 | 30.00 |
| Conversion | 48.00 | 34.00 |
| Assignment of costs | Bicycles | Tricycles |
| Beginning WIP | 19,030.00 | 6,190.00 |
| Complete Beginning WIP | 1,920.00 | 1,190.00 |
| Started and completed in Mar | 87,720.00 | 60,160.00 |
| Ending WIP | 16,588.00 | 2,310.00 |
See workings below.
| Workings for answer 4 | |
| Goods transferred out in Mar | |
| Inventory in process Mar 1 | 200.00 |
| Add: Units started into production | 1,310.00 |
| Less: Inventory in process, Mar 31 | 290.00 |
| Goods transferred out in Mar | 1,220.00 |
| Started and completed in Mar | |
| Goods transferred out in Mar | 1,220.00 |
| Less: Inventory in process Mar 1 | 200.00 |
| Started and completed in Mar | 1,020.00 |
| Cost of Production Report- Bicycles | |
| For the Month Ended Mar 31 | |
| Unit information | Physical Units |
| Units charged to production: | |
| Inventory in process Mar 1 | 200.00 |
| Units started into production | 1,310.00 |
| Total units accounted for by the Department | 1,510.00 |
| Equivalent Units | ||||
| Units to be assigned costs: | Materials | Conversion | ||
| Inventory in process Mar 1 | 200.00 | - | 40.00 | See note A |
| Started and completed in Mar | 1,020.00 | 1,020.00 | 1,020.00 | |
| Inventory in process, Mar 31 | 290.00 | 290.00 | 116.00 | This is closing units multiplied by % of completion |
| Total units to be assigned costs: | 1,510.00 | 1,310.00 | 1,176.00 | |
| Cost Information | Materials | Conversion | Total | |
| Costs per equivalent unit | ||||
| Total costs for March | 49,780.00 | 56,448.00 | 106,228.00 | |
| Total equivalent units | 1,310.00 | 1,176.00 | ||
| Cost per equivalent unit | 38.000 | 48.000 | 86.000 | |
| Costs assigned to production: | ||||
| Inventory in process Mar 1 | 19,030.00 | |||
| Complete Beginning WIP | - | 1,920.00 | 1,920.00 | |
| Started and completed in Mar | 38,760.00 | 48,960.00 | 87,720.00 | |
| Inventory in process, Mar 31 | 11,020.00 | 5,568.00 | 16,588.00 | |
| Total costs assigned by the Department | 125,258.00 |
| Goods transferred out in Mar | Tricycles |
| Inventory in process Mar 1 | 140.00 |
| Add: Units started into production | 1,000.00 |
| Less: Inventory in process, Mar 31 | 60.00 |
| Goods transferred out in Mar | 1,080.00 |
| Started and completed in Mar | |
| Goods transferred out in Mar | 1,080.00 |
| Less: Inventory in process Mar 1 | 140.00 |
| Started and completed in Mar | 940.00 |
| Cost of Production Report- Tricycles | |
| For the Month Ended Mar 31 | |
| Unit information | Physical Units |
| Units charged to production: | |
| Inventory in process Mar 1 | 140.00 |
| Units started into production | 1,000.00 |
| Total units accounted for by the Department | 1,140.00 |
| Equivalent Units | ||||
| Units to be assigned costs: | Materials | Conversion | ||
| Inventory in process Mar 1 | 140.00 | - | 35.00 | See note A |
| Started and completed in Mar | 940.00 | 940.00 | 940.00 | |
| Inventory in process, Mar 31 | 60.00 | 60.00 | 15.00 | This is closing units multiplied by % of completion |
| Total units to be assigned costs: | 1,140.00 | 1,000.00 | 990.00 | |
| Cost Information | Materials | Conversion | Total | |
| Costs per equivalent unit | ||||
| Total costs for March | 30,000.00 | 33,660.00 | 63,660.00 | |
| Total equivalent units | 1,000.00 | 990.00 | ||
| Cost per equivalent unit |
 ekkarill92 answered 2 years agoRelated SolutionsOwen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of...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
190
80
%
Units started into production
1,380
Work in process units, March 31
300
40
%
Cost Data—Bicycles
Work in process...
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of...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...
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of...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
1,430
Work in process units, March 31
300
40
%
Cost Data—Bicycles
Work in process...
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of...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
210
80
%
Units started into production
1,270
Work in process units, March 31
300
40
%
Cost Data—Bicycles
Work in process...
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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 1 190 80 % Units started into production 1,400
Work in process units, March 31 310 40 %
Cost Data—Bicycles Work...
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are as follows. Percent Production Data—Bicycles Units Complete
Work in process units, May 1 500 80% Units started in production
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Direct materials 50,000 Direct labor 19,020 Manufacturing overhead
33,680...
Swinn Company manufactures bicycles. Materials are added at the beginning of the production process, and conversion...Swinn Company manufactures bicycles. Materials are added at the
beginning of the production process, and conversion costs are
incurred uniformly. Production and cost data for the month of May
are as follows.
Percent
Production Data—Bicycles Units Complete
Work in process units, May 1 500 80%
Units started in production 2,000
Work in process units, May 31 800 40%
Cost Data—Bicycles
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Direct materials 50,000
Direct labor 19,020
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Swinn Company manufactures bicycles. Materials are added at the
beginning of the production process, and conversion costs are
incurred uniformly. Production and cost data for the month of May
are as follows.
Percent Production Data—Bicycles Units Complete Work in process
units, May 1 500 80% Units started in production 2,000 Work in
process units, May 31 800 40%
Cost Data—Bicycles Work in process, May 1 Materials $15,000
Conversion costs 18,000 $33,000 Direct materials 50,000 Direct
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production process and conversion costs are incurred evenly.
Jessica uses the FIFO method to calculate equivalent units.
Production and cost data for the month of August are as
follows:
Production Data—Hockey
pucks
Units
Percent Complete
Work in process units, August 1
500
70%
Units started into production
1,600
Work in process units, August 31
600
30%
Cost Data—Hockey pucks
Work in...
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Jessica Company manufactures hockey pucks and soccer balls. For
both products, materials are added at the beginning of the
production process and conversion costs are incurred evenly.
Jessica uses the FIFO method to calculate equivalent units.
Production and cost data for the month of August are as
follows:
Production Data—Hockey pucks
Units
Percent Complete
Work in process units, August 1
430
70%
Units started into production
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Work in process units, August 31
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