BICYCLES Units Direct Materials Conversion Work in process units, March 1 200 Units started into…

BICYCLES Units Direct Materials Conversion Work in process units, March 1 200 Units started into production 1,250 Total units 1,450 Completed units Out of Work in process of March 1 200 – 40 (200 * 20% complete) Out of units started 950 950 950 (950 * 100% complete) (950 * 100% complete) Work in process units, March 31 300 300 120 (300 * 100% complete) (300 * 40% complete) Total units 1,450 1,250 1,110 TRICYCLES Units Direct Materials Conversion Work in process units, March 1 100 Units started into production 800 Total units 900 Completed units Out of Work in process of March 1 100 – 25 (100 * 25% complete) Out of units started 740 740 740 (740 * 100% complete) (740 * 100% complete) Work in process units, March 31 60 60 15 (60 * 100% complete) (60 * 25% complete) Total units 900 800 780 Answer B BICYCLES Unit cost of production Direct Materials Conversion Cost $ 50,000 $ 55,500 Divide by Equivalent units 1,250 1,110 Unit cost $ 40 $ 50 TRICYCLES Direct Materials Conversion Cost $ 30,400 $ 35,100 Divide by Equivalent units 800 780 Unit cost $ 38 $ 45 Answer C BICYCLES Assignment of Cost Cost of completed units Direct Materials Conversion Total Work in process, March 1 $ 19,280 $ – $ 19,280 Out of Work in process of March 1 $ – $ 2,000 $ 2,000 (40 units * $ 50 per unit) Out of units started $ 38,000 $ 47,500 $ 85,500 (950 units * $ 40 per unit) (950 units * $ 50 per unit) $ 57,280 $ 49,500 $ 106,780 Cost of Work in process, March 31 Direct Materials Conversion Total