Haifeng Cycles manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Haifeng Cycles uses the FIFO method to compute equivalent units. Production and cost data for the month of March 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 March for the bicycles only.

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Percentage Production Data–Bicycles Complete Units Work in process units, March 1 Units started into production Work in process units, March 31 200 80% 1,000 300 40% Cost Data-Bicycles Work in process, March 1 €19,280 50,000 25,900 30,000 Direct materials Direct labor Manufacturing overhead Percentage Complete Production Data-Tricycles Units Work in process units, March 1 Units started into production 100 75% 1,000 25% Work in process units, March 31 60 Cost Data-Tricycles € 6,125 Work in process, March 1 Direct materials 30,000 Direct labor 14,300 20,000 Manufacturing overhead