Problem 16-7A Owen Company manufactures bicycles and tricycles. For both product
ID: 2542085 • Letter: P
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.
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 Work in process units, March 1 Units started into production Work in process units, March 31 80 % 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 Work in process units, March 1 Units started into production Work in process units, March 31 75% 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 blclsSO unit costs of tricydes 30Explanation / Answer
Production cost report-bicycles for the month Ended March 31 Equivalent units physical Materials Conversion units costs Quantities Units to be accounted for Work in process ,March 1 200 Started in production 1,000 total units 1,200 Units accounted for Completed and transferred out Work in process ,March 1 200 0 40 Started and completed 700 700 700 Work in process ,March 31 300 300 120 Total units 1200 1000 860