Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ...
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Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department.
Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table.
CoursHeroTranscribedText: Units produced Materials cost Conversion costs Assembly Customization Total conversion costs Total 12,700 $9,574,000 8,483,600 810,000 $9,293,500 E20 4,900 $2,450,000 E35 4,400 $3,344,000 E60 3,400 $3,780,000
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