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Saved Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories.
Saved Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Coaster 750 Traveler Total 450 1,200 $ 624 $ 1,200 $ 297,000 380,000 245,000 338,000 Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Coster Traveler Total Material cost Operation cost $ 468,000 $ 540,000 $ $ 1,008,000 0 Total cost Unit Cost
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