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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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vi.9
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
Coaster
750
$ 628
Coaster
Traveler
450
$ 1,204
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.
Traveler
77425
Total
1,200
S
$ 301,800
384,800
249,800
342,800
Total
0
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