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 form 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.

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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 form 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.

 

                                                                                  Total                   E20                      E35                     E60

Units produced                                               11,200                  4,400                3,900                  2,900

Materials cost                                          $8,344,000        $2,200,000      $2,964,000        $3,180,000

Conversion costs

Assembly                                                    7,369,600

Customization                                               735,000

   Total conversion costs                         $8,104,600

 

 

Required:

What is the cost per unit transferred to finished goods inventory for each of the three models in November?

 

                     Cost Per Unit

E20            ___________

E35            ___________

E60            ___________ 

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