Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the Assembly Department for March are as follows. Production Data—Bicycles Units Percentage Complete as to Conversion Costs Work in process units, March 1 200 80% Units started into production 1,000 Work in process units, March 31 300 40% Cost Data—Bicycles Work in process, March 1 $19,280 Costs added during March Direct materials 50,000 Direct labor 25,900 Manufacturing overhead 30,000 Production Data—Tricycles Units Percentage Complete as to Conversion Costs Work in process units, March 1 100 75% Units started into production 1,000 Work in process units, March 31 60 25% Cost Data—Tricycles Work in process, March 1 $ 6,125 Costs added during March Direct materials 30,000 Direct labor 14,300 Manufacturing overhead 20,000 Instructions Calculate the following for both the bicycles and the tricycles. The equivalent units of production for materials and conversion costs. The unit costs of production for materials and conversion costs. The assignment of costs to units completed and transferred out and to work in process at the end of the accounting period. a. Bicycles: 1. Materials 1,000 2. Materials $50 3. Completed and transferred out $102,380 Ending WIP $22,800 Prepare a production cost report for March 2022 for the
Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the Assembly Department for March are as follows. Production Data—Bicycles Units Percentage Complete as to Conversion Costs Work in process units, March 1 200 80% Units started into production 1,000 Work in process units, March 31 300 40% Cost Data—Bicycles Work in process, March 1 $19,280 Costs added during March Direct materials 50,000 Direct labor 25,900 Manufacturing overhead 30,000 Production Data—Tricycles Units Percentage Complete as to Conversion Costs Work in process units, March 1 100 75% Units started into production 1,000 Work in process units, March 31 60 25% Cost Data—Tricycles Work in process, March 1 $ 6,125 Costs added during March Direct materials 30,000 Direct labor 14,300 Manufacturing overhead 20,000 Instructions Calculate the following for both the bicycles and the tricycles. The equivalent units of production for materials and conversion costs. The unit costs of production for materials and conversion costs. The assignment of costs to units completed and transferred out and to work in process at the end of the accounting period. a. Bicycles: 1. Materials 1,000 2. Materials $50 3. Completed and transferred out $102,380 Ending WIP $22,800 Prepare a production cost report for March 2022 for the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the Assembly Department for March are as follows.
Production Data—Bicycles Units Percentage
Complete as to
Conversion Costs
Work in process units, March 1 200 80%
Units started into production 1,000
Work in process units, March 31 300 40%
Cost Data—Bicycles
Work in process, March 1 $19,280
Costs added during March
Direct materials 50,000
Direct labor 25,900
Manufacturing overhead 30,000
Production Data—Tricycles Units Percentage
Complete as to
Conversion Costs
Work in process units, March 1 100 75%
Units started into production 1,000
Work in process units, March 31 60 25%
Cost Data—Tricycles
Work in process, March 1 $ 6,125
Costs added during March
Direct materials 30,000
Direct labor 14,300
Manufacturing overhead 20,000
Instructions
Calculate the following for both the bicycles and the tricycles.
The equivalent units of production for materials and conversion costs.
The unit costs of production for materials and conversion costs.
The assignment of costs to units completed and transferred out and to work in process at the end of the accounting period.
a. Bicycles:
1. Materials 1,000
2. Materials $50
3. Completed and transferred out $102,380
Ending WIP $22,800
Prepare a production cost report for March 2022 for the bicycles only
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