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Check LO Coastal Cycles makes three models of electric bicycles E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department. 1 points 01:31:29 Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table. Total E20 E35 E60 eBook 7,000 $4,900,000 3,000 $1,500,000 2,500 $1,900,000 1,500 $1,500,000 Print Units produced Materials cost Conversion costs Assembly Customization Total conversion costs References 4,410,000 525,000 $4,985,800 The marketing manager cannot believe that the Controller wants to treat all bicycles the same. He says that in order to understand where to target marketing resources, he needs to understand the profitability (and therefore the costs) of the individual models. He suggests treating the individual models as 'jobs" using job costing to calculate the costs of the individual models. He also suggested, based on what he remembered from his cost accounting course, that the conversion costs should be applied to the jobs based on direct material costs. Required: a. Suppose the marketing manager's suggestion is followed. What will be the unit cost of a bike produced in November? Help Saves Exit Checki 5 IOTOI COnversion COSTS AS RULU 1 points The marketing manager cannot believe that the Controller wants to treat all bicycles the same. He says that in order to understand where to target marketing resources, he needs to understand the profitability (and therefore the costs) of the individual models. He suggests treating the individual models as "jobs" using job costing to calculate the costs of the individual models. He also suggested, based on what he remembered from his cost accounting course, that the conversion costs should be applied to the jobs based on direct material costs. 01131:04 Required: a. Suppose the marketing manager's suggestion is followed. What will be the unit cost of a bike produced in November? eBook Unit Cost Print References E35 E60 dve Exit Submit 10 Check my work 1 Coastal Cycles makes three models of electric bicycles E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department. points 01:29.49 Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories Data for production in November are shown in the following table. Skipped E20 E35 Total 7,000 $4,900,000 3,000 $1,500,000 2,500 $1,900,000 E60 1,500 $1,500,000 eBook Units produced Materials cost Conversion costs Assembly Customization Total conversion costs Print 4,410,000 525,000 $4,935,000 References The plant controller believes that keeping track of the three models and separating costs in the Assembly and Customization Departments is not worth the time and effort. She suggests not distinguishing between the three bike models, treating Assembly and Customization as a single department, and using process costing to develop product costs for the three bikes. Required: a. Suppose the Controller's suggestion is followed What will be the unit cost of a bike produced in November