Marte Company manufactures bicycles and tricycles. For both products, 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.

Production DataBicycles	Units	Percent Complete
Work in process units, May 1	500	80%
Units started in production	1,500
Work in process units, May 31	800	25%
Cost DataBicycles
Work in process, May 1
Materials	$15,000
Conversion costs	18,000	$ 33,000
Direct materials		50,000
Direct labor		18,320
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.