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. Units produced Materials cost Conversion costs Assembly Customization Total conversion costs E20 Total 12,700 4,900 $9,574,000 $2,450,000 8,483,600 810,000 $9,293,600 E35 E60 4,400 3,400 $3,344,000 $3,780,000 Required: What is the cost per unit transferred to finished goods inventory for each of the three models in November?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Units produced
Materials cost
Conversion costs
Assembly
Customization
Total conversion costs
E20
E35
E60
Total
12,700
$9,574,000
Cost Per Unit
8,483,600
810,000
$9,293,600
E20
E35
4,900
4,400
$2,450,000 $3,344,000
Required:
What is the cost per unit transferred to finished goods inventory for each of the three models in November?
E60
3,400
$3,780,000
Transcribed Image Text: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. Units produced Materials cost Conversion costs Assembly Customization Total conversion costs E20 E35 E60 Total 12,700 $9,574,000 Cost Per Unit 8,483,600 810,000 $9,293,600 E20 E35 4,900 4,400 $2,450,000 $3,344,000 Required: What is the cost per unit transferred to finished goods inventory for each of the three models in November? E60 3,400 $3,780,000
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