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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. Total E20 E35 E60 Units produced Materials cost Conversion costs Assembly Customization 7,600 2,700 3,200 $1,600,000 1,700 $5,392,000 $2,052,000 $1,740,000 4,818,400 555,000 Total conversion costs $5,373,400 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
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. Total E20 E35 E60 Units produced Materials cost Conversion costs Assembly Customization 7,600 2,700 3,200 $1,600,000 1,700 $5,392,000 $2,052,000 $1,740,000 4,818,400 555,000 Total conversion costs $5,373,400 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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