Solution-What is the cost per unit transferred to finished

What is the cost per unit transferred to finished goods

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Reference no: EM132867457

Question - Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department.

Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table.

	Total	E20	E35	E60
Units produced	7,000	3,000	2,500	1,500
Materials cost	$4,900,000	$1,500,000	$1,900,000	$1,500,000

Conversion costs Assembly 4,410,000

Customization 525,000

Total conversion costs $4,935,000

Required - What is the cost per unit transferred to finished goods inventory for each of the three models in November?

Reference no: EM132867457

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What is the cost per unit transferred to finished goods

Reference no: EM132867457

Reference no: EM132867457

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