Swinn Company manufactures bicycles. Materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the month of May are as follows.

Production Data—Bicycles

Units

Complete

Work in process units, May 1

500

80%

Units started in production

2,000

Work in process units, May 31

800

40%

Cost Data—Bicycles

Work in process, May 1

Materials

$15,000

Conversion costs

18,000

$33,000

Direct materials

50,000

Direct labor

19,020

Manufacturing overhead

33,680

Instructions

(a)Calculate the following.

(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 May for the bicycles.