Problem 17-7A (Part Level Submission) Owen Company manufactures bicycles and tri
ID: 2403820 • 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 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 20,000Explanation / Answer
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