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Answer all please. Thanks! Coastal Cycles makes three models of electric bicycles E20, E35, and E60. The models differ by the size of the battery
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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. 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. E20 E35 E60 Total 7,000 $4,900,000 3,000 $1,500,000 2,500 $1,900,000 1,500 $1,500,000 Units produced Materials cost Conversion costs Assembly Customization Total conversion costs 4,410,000 525,000 $4,935,000 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? The following information pertains to the Moline Facility for the month of May (all materials are added at the beginning of the process): Units 100,000 260,000 240,000 120,000 Material Costs $ 33,000 106,000 Beginning work in process Started in May Units completed Ending work in process Required: Compute the cost per equivalent unit for materials using the weighted-average method (Round "Cost per equivalent unit" answer to 2 decimal places.) Total costs to be accounted for Cost per equivalent unitStep by Step Solution
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