Question
Devereaux Cycles makes three models of scooter: Commuter, Sport, and X-treme. The scooters are produced in four departments: Assembly, Detailing, Customization, and Packaging. All three
Devereaux Cycles makes three models of scooter: Commuter, Sport, and X-treme. The scooters are produced in four departments: Assembly, Detailing, Customization, and Packaging. All three models are started in Assembly, where all materials are assembled. The Commuter is then sent to Packaging, where it is packaged and transferred to finished goods inventory. The Sport is then transferred to Detailing. Once the detailing process is completed, the Sport models are transferred to Packaging and then finished goods. The X- Treme model is assembled and then transferred to Customization, and then Packaging. When packaged, it is transferred to finished
goods.
Data for February are shown in the following table. Conversion costs are allocated based on the number of units processed in each
department. No work-in-process inventores are maintained in any department.
Materials
Total
$ 3,679,000
Commuter
(1.200 units)
$1,443,000
Sport
(900 units)
$ 1,353,000
X-Treme
(400 units)
$ 883,000
Conversion costs:
Assembly $ 2,675,000
Detailing 427,500
Customization 547,000
Packaging 367,500
Total conversion costs $ 4,017,000
Required:
b. What is the cost per unit transferred to finished goods inventory for each of the three models in February?
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
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