Swinn Company manufactures bicycles. 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.

Percent

Production DataBicycles Units Complete

Work in process units, May 1 500 80%

Units started in production 2,000

Work in process units, May 31 800 40%

Cost DataBicycles

Work in process, May 1 Materials $15,000

Conversion costs 18,000 $33,000

Direct materials 50,000

Direct labor 19,020

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.