Problem 17-7A

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 1 190 80 % Units started into production 1,400 Work in process units, March 31 310 40 %

Cost DataBicycles Work in process units, March 1 $19,330 Direct materials 50,000 Direct labor 26,500 Manufacturing overhead 29,900

Production DataTricycles Units Percentage Complete Work in process units, March 1 140 75 % Units started into production 1,000 Work in process units, March 31 60 25 %

Cost DataTricycles Work in process units, March 1 $6,050 Direct materials 30,400 Direct labor 14,200 Manufacturing overhead 19,800

1. Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles.

2. Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles.

3. 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.

4. Prepare a production cost report for the month of March for the bicycles only