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Rondeli Company 200

Price: $2.50


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


Production Data - Bicycles Units % Complete
Work in process units, March 1   200 80%
Units started into production   1,250
Work in process units, March 31   300 40%
 
Cost Data - Bicycles Units % Complete
Work in process, March 1   19,280
Direct materials   50,000
Direct labor   25,500
Manufacturing overhead   30,000
 
Production Data - Tricycles Units % Complete
Work in process units, March 1   100 75%
Units started into production   800
Work in process units, March 31   60 25%
 
Cost Data - Tricycles 
Work in process, March 1   6,125
Direct materials   30,400
Direct labor   15,100
Manufacturing overhead   20,000


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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