Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the

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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 month of March are as follows.

Owen Company manufactures bicycles and tricycles. For both products, materials
Owen Company manufactures bicycles and tricycles. For both products, materials

Instructions
(a) Calculate the following for both the bicycles and the tricycles.
(1) The equivalent units of production for materials and conversion costs.
(2) The unit costs of production for materials and conversion costs.
(3) The assignment of costs to units transferred out and in process at the end of the accounting period.
(b) Prepare a production cost report for the month of March for the bicycles only.

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Managerial Accounting Tools for Business Decision Making

ISBN: 978-1119036432

7th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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