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Need help with Accounting questions

Daniel Kevins

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Problem 16-7A

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	Percent Complete
Work in process units, March 1	200	80	%
Units started into production	1,340
Work in process units, March 31	310	40	%

Cost Data—Bicycles	Units	Percent Complete
Work in process units, March 1	$19,270
Direct materials	49,730
Direct labor	25,120
Manufacturing overhead	29,950

Production Data—Tricycles	Units	Percent Complete
Work in process units, March 1	1,000	75	%
Units started into production	800
Work in process units, March 31	60	25	%

Cost Data—Tricycles	Units	Percent Complete
Work in process units, March 1	$6,070
Direct materials	30,490
Direct labor	15,230
Manufacturing overhead	19,900

[img border=”0″ alt=”” height=”1″ width=”8″ src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif”>

Calculate the following for both the bicycles and the tricycles.

(1) The equivalent units of production for materials and conversion costs.

Materials	Conversion Costs
Equivalent Units of bicycles	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_1″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_003″>
Equivalent Units of tricycles	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_005″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_007″>

(2) The unit costs of production for materials and conversion costs. (Round unit costs to 3 decimal places, e.g. 25.215.)

Materials	Conversion Costs
Unit costs of bicycles	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_009″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_011″>
Unit costs of tricycles	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_013″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_015″>

(3) The assignment of costs to units transferred out and in process at the end of the accounting period. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Costs accounted for:
Transferred out	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_017″>
Work in process, March 1
Materials	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_019″>
Conversion costs	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_021″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_023″>
Total costs	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_025″>

Tricycles

Costs accounted for:
Transferred out	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_027″>
Work in process, March 1
Materials	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_029″>
Conversion costs	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_031″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_033″>
Total costs	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_035″>

[img border=”0″ alt=”” height=”1″ width=”8″ src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif”>

Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)

RONDELI COMPANY Production Cost Report—Bicycles For the Month Ended March 31
Equivalent Units
Quantities	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process, March 1	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_037″>
Started into production	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_039″>
Total units	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_041″>
Units accounted for
Completed and transferred out
Work in process, March 1	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_043″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_045″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_047″>
Started and completed	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_049″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_051″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_053″>
Work in process, March 31	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_055″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_057″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_059″>
Total units	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_061″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_063″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_065″>
Costs	Materials	Conversion Costs	Total
Unit costs
Costs in March	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_067″>	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_069″>	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_071″>
Equivalent units	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_073″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_075″>
Unit costs	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_077″>	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_079″>	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_081″>
Costs to be accounted for
Work in process, March 1	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_083″>
Started into production	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_085″>
Total costs	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_087″>
Cost Reconciliation Schedule
Costs accounted for
Transferred out
Work in process, March 1	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_089″>
Conversion costs to complete beginning inventory	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_091″>
Started and completed	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_093″>	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_095″>
Work in process, March 31
Materials	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_097″>
Conversion costs	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_099″>	[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_101″>
Total costs	$[img alt=”” src=”http://edugen.wileyplus.com/edugen/art2/common/pixel.gif” class=”answerMarker” id=”amarker_res_EAT_1351252642769_0_818970966501276_103″>

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Daniel Kevins

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