Problem 16-7A Owen Company manufactures bicycles and tricycles. For both product

Question

Problem 16-7A 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 Production Data-Bicycles Units 80 % 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 Production Data -Tricycles Units 75% 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 20,000 Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricydes. (Round answers to o decimal places, e.g. 2,520.) Materials Conversion Costs Equivalent Units of bicycles Equivalent Units of tricycleslooo Your answer is incorrect. Try again. Calculate the unit costs of production for materials and conversion costs for both the bicycdes and the tricycles. (Round unit costs to 3 decimol ploces, e.p. 25.215.) Materials Conversion Costs Unit costs of blcycles unit costs of tricydes 30

Explanation / Answer

Equivalent units were as follows:

Bicylces costs accounted for transferred out (19,280 +40*65+700*115) 102380 Work in process ,march 1 materials (300*50) 15000 conversion (120*65) 7800 22800 125180 Tricylcles costs accounted for transferred out (6,125+25*35 +940*65) 68100 Work in process ,march 1 materials (60*30) 1,800 conversion (15*35) 525 2325 70425

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