Cannondale Bicycle Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system to determine unit costs. Bicycle parts are manufactured in the Moulding Department and transferred to the Assembly Department where they are assembled. After assembly, the bicycles are sent to the Packing Department. Cost and production figures for the Assembly Department are presented below for the month of June:


Production Data (in unit)  
Beginning WIP Inventory (70% complete as to material; 40% complete as to conversion) 70,000
Started in June 460,000
Completed and transferred out 450,000
Ending WIP Inventory (75% complete as to material; 25% complete as to conversion) 80,000


  Cost Data (in dollar)  
  Material Conversion
Beginning WIP Inventory $36,550 $13,500
Current period $391,850 $287,300



  1. Determine the cost per equivalent unit for the Assembly Department’s direct materials and conversion costs, and the total unit cost for the current period, under the
    1. Weighted-Average method
    2. FIFO method
  2. Assign total costs to units completed (and transferred out) to Packaging Department and to units in ending work in process in the Assembly Department.

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