Problem 17-7AOwen Company manufactures bicycles and tricycles. For bothproducts, materials are added at the...Problem...

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Accounting

Problem 17-7A
Owen Company manufactures bicycles and tricycles. For bothproducts, materials are added at the beginning of the productionprocess, and conversion costs are incurred uniformly. Owen Companyuses the FIFO method to compute equivalent units. Production andcost data for the month of March are as follows.
Production Data—Bicycles Units Percentage Complete Work inprocess units, March 1 190 80 % Units started into production 1,400Work in process units, March 31 310 40 %
Cost Data—Bicycles Work in process units, March 1 $19,330 Directmaterials 50,000 Direct labor 26,500 Manufacturing overhead29,900
Production Data—Tricycles Units Percentage Complete Work inprocess units, March 1 140 75 % Units started into production 1,000Work in process units, March 31 60 25 %
Cost Data—Tricycles Work in process units, March 1 $6,050 Directmaterials 30,400 Direct labor 14,200 Manufacturing overhead19,800
1. Calculate the equivalent units of production for materialsand conversion costs for both the bicycles and the tricycles.
2. Calculate the unit costs of production for materials andconversion costs for both the bicycles and the tricycles.
3. Calculate the assignment of costs to units transferred outand in process at the end of the accounting period for both thebicycles and the tricycles.
4. Prepare a production cost report for the month of March forthe bicycles only

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Answer 1 Particular Material Conversion Equivalent Units Bycycle 1590 1442 Equivalent Units Tricycle 1140 1130 Answer 2 Particular Material Conversion Bycycle 314 391 TriCycles 2667 3009 Answer 3 Bycycle Tricycle Units Cost Units Cost Completed 1280 1096454 1080 6734558 WIP 31 March 310 145984 60 205136 Workings Bicycles March 1 WIP 1 190 Unit started 2 1400 March 31 WIP 3 310 See Answer

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In: AccountingProblem 17-7AOwen Company manufactures bicycles and tricycles. For bothproducts, materials are added at the...Problem 17-7AOwen Company manufactures bicycles and tricycles. For bothproducts, materials are added at the beginning of the productionprocess, and conversion costs are incurred uniformly. Owen Companyuses the FIFO method to compute equivalent units. Production andcost data for the month of March are as follows.Production Data—Bicycles Units Percentage Complete Work inprocess units, March 1 190 80 % Units started into production 1,400Work in process units, March 31 310 40 %Cost Data—Bicycles Work in process units, March 1 $19,330 Directmaterials 50,000 Direct labor 26,500 Manufacturing overhead29,900Production Data—Tricycles Units Percentage Complete Work inprocess units, March 1 140 75 % Units started into production 1,000Work in process units, March 31 60 25 %Cost Data—Tricycles Work in process units, March 1 $6,050 Directmaterials 30,400 Direct labor 14,200 Manufacturing overhead19,8001. Calculate the equivalent units of production for materialsand conversion costs for both the bicycles and the tricycles.2. Calculate the unit costs of production for materials andconversion costs for both the bicycles and the tricycles.3. Calculate the assignment of costs to units transferred outand in process at the end of the accounting period for both thebicycles and the tricycles.4. Prepare a production cost report for the month of March forthe bicycles only