Problem 17-7A (Part Level Submission) Owen Company manufactures bicycles and tri
ID: 2403163 • Letter: P
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 Complete 80 % Work in process units, March 1 Units started into production Work in process units, March 31 Production Data-BicyclesUnits 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 100 Work in process units, March 1 Units started into production Work in process units, March 31 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 (a1) 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 tricyclesExplanation / Answer
Equivalent units of bicycle:-
[900 units - 200 units of beginning*100% ].
=700
[900 units - 200 units of beginning*80% ].
= 740
300*0.4
=120
Note:- Units completed and transferred = 200 + 1000 - 300
= 900 units
Equivalent units of Tricycle:-
[1040 units - 100 units of beginning*100% ].
=940
[1040units - 100 units of beginning*75% ].
=965
60*25%
= 15
Note:- Units completed and transferred = 100 + 1000 - 60
= 1040 units
Materials Conversion cost Units completed and transferred[900 units - 200 units of beginning*100% ].
=700
[900 units - 200 units of beginning*80% ].
= 740
Ending work in process 300300*0.4
=120
1000 units 860 units