Exercise 6-55 (Algo) Operations Costing (LO 6-4) 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 Operation cost Materials cost Total cost Unit cost Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. $ Coaster Traveler 750 450 $1,220 $ 644 Coaster 644 S Traveler Total 1,200 1,220 $ $ 321,000 404,000 269,000 362,000 Total 1,864
Exercise 6-55 (Algo) Operations Costing (LO 6-4) 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 Operation cost Materials cost Total cost Unit cost Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. $ Coaster Traveler 750 450 $1,220 $ 644 Coaster 644 S Traveler Total 1,200 1,220 $ $ 321,000 404,000 269,000 362,000 Total 1,864
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Munabhai
![Exercise 6-55 (Algo) Operations Costing (LO 6-4)
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.
Operation cost
Materials cost
Total cost
Unit cost
Required:
Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute
the cost of each model assembled in the second quarter.
Note: Do not round intermediate calculations. Round your final answers to nearest whole number.
$
Coaster Traveler
750
450
$1,220
$ 644
Coaster
644 S
Traveler
Total
1,200
1,220 $
$ 321,000
404,000
269,000
362,000
Total
1,864](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b4cfa66-3ca1-4a52-ab67-883b628d80d6%2F5be78a6d-bfa5-4b1f-876b-1e176e23a0d2%2F8f7vxt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 6-55 (Algo) Operations Costing (LO 6-4)
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.
Operation cost
Materials cost
Total cost
Unit cost
Required:
Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute
the cost of each model assembled in the second quarter.
Note: Do not round intermediate calculations. Round your final answers to nearest whole number.
$
Coaster Traveler
750
450
$1,220
$ 644
Coaster
644 S
Traveler
Total
1,200
1,220 $
$ 321,000
404,000
269,000
362,000
Total
1,864
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College