National Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. National Company uses the FIFO method to calculate equivalent units. Production and cost data for the month of May are as follows:

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 May for the bicycles only.

Transcribed Image Text:

Production Data Bicycles Work in process units, May 1 Units started into production Work in process units, May 31 Units Percent Complete 70% 300 1,200 500 30% Cost Data -Bicycles Work in process, May 1 Direct materials Direct labour Manufacturing overhead $17,400 48,000 19,400 30,420 Production Data-Tricycles Work in process units, May 1 Units started into production Work in process units, May 31 UnitsPercent Complete 100 900 200 75% 40% Cost Data- Tricycles Work in process, May 1 Direct materials Direct labour Manufacturing overhead $ 8,000 63,000 31,060 45,415