CHAPTER 16 Swinn 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.

Percent Production DataBicycles Units Complete Work in process units, May 1 500 80% Units started in production 2,000 Work in process units, May 31 800 40%

Cost DataBicycles Work in process, May 1 Materials $15,000 Conversion costs 18,000 $33,000 Direct materials 50,000 Direct labor 19,020 Manufacturing overhead 33,680

Instructions (a) Calculate the following.

(1) The equivalent units of production for materials and conversion.

(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.