Question
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly.
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.
| Production DataBicycles | Units | Percentage Complete | |||
| Work in process units, March 1 | 200 | 80 | % | ||
| Units started into production | 1,440 | ||||
| Work in process units, March 31 | 300 | 40 | % | ||
| Cost DataBicycles | ||
| Work in process units, March 1 | $19,130 | |
| Direct materials | 48,960 | |
| Direct labor | 26,000 | |
| Manufacturing overhead | 29,900 |
| Production DataTricycles | Units | Percentage Complete | |||
| Work in process units, March 1 | 100 | 75 | % | ||
| Units started into production | 1,000 | ||||
| Work in process units, March 31 | 60 | 25 | % | ||
| Cost DataTricycles | ||
| Work in process units, March 1 | $6,120 | |
| Direct materials | 30,000 | |
| Direct labor | 14,500 | |
| Manufacturing overhead | 19,800 |
Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.
| Materials | Conversion Costs | |||
| Equivalent Units of bicycles | ||||
| Equivalent Units of tricycles |
eTextbook and Media
Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.
| Materials | Conversion Costs | |||
| Unit costs of bicycles | ||||
| Unit costs of tricycles |
eTextbook and Media
Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles. Bicycles
| Costs accounted for: | ||
| Transferred out | $ | |
| Work in process, March 31 | ||
| Materials | $ | |
| Conversion costs | ||
| Total costs | $ |
Tricycles
| Costs accounted for: | ||
| Transferred out | $ | |
| Work in process, March 31 | ||
| Materials | $ | |
| Conversion costs | ||
| Total costs | $ |
eTextbook and Media
Prepare a production cost report for the month of March for the bicycles only.
| OWEN COMPANY Production Cost ReportBicycles For the Month Ended March 31 | ||||||
| Equivalent Units | ||||||
| Quantities | Physical Units | Materials | Conversion Costs | |||
| Units to be accounted for | ||||||
| Work in process, March 1 | ||||||
| Started into production | ||||||
| Total units | ||||||
| Units accounted for | ||||||
| Completed and transferred out | ||||||
| Work in process, March 1 | ||||||
| Started and completed | ||||||
| Work in process, March 31 | ||||||
| Total units | ||||||
| Costs | Materials | Conversion Costs | Total | |||
| Unit costs | ||||||
| Costs in March | $ | $ | $ | |||
| Equivalent units | ||||||
| Unit costs | $ | $ | $ | |||
| Costs to be accounted for | ||||||
| Work in process, March 1 | $ | |||||
| Started into production | ||||||
| Total costs | $ | |||||
| Cost Reconciliation Schedule | ||||||
| Costs accounted for | ||||||
| Transferred out | ||||||
| Work in process, March 1 | $ | |||||
| Conversion costs to complete beginning inventory | ||||||
| Started and completed | $ | |||||
| Work in process, March 31 | ||||||
| Materials | ||||||
| Conversion costs | ||||||
| Total costs | $ | |||||
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
17th Edition
0077304454, 978-0077304454
