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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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   13,000     5,000     4,500     3,500    
Materials cost $ 9,820,000   $ 2,500,000   $ 3,420,000   $ 3,900,000  
Conversion costs                        
Assembly   8,710,000                    
Customization   825,000                    
Total conversion costs $ 9,535,000                    
 

 

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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