Sarku 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:

Instructions
(a) Calculate the following:
1. The equivalent units of production for materials and conversion costs
2. The unit costs of production for materials and conversion costs
3. The assignment of costs to units transferred out and in process at the end of the accounting period
(b) Prepare a production cost report for the month of May for the bicycles.

Transcribed Image Text:

Production Data-Bicycles Work in process units, May 1 Units started into production Work in process units, May 31 Units Percent Complete Cost Data-Bicycles Work in process, May 1 Materials Conversion costs Direct materials Direct labour Manufacturing overhead $15,000 18,000 S33,000 50,000 19,020 33,680