Pedalless Bicycle Corporation, manufactures motor-assisted bicycles. Pedalless began operations on January 1, 2025. During 2025, Pedalless incurred the following costs:
Required:
a. Complete the above table by classifying each cost as either a product cost or a period cost; for items classified as product costs, further classify as a direct cost or an indirect cost.
b. Calculate total direct costs and total indirect (MOH) costs.
c. For year ended December 31, 2025, determine gross margin and operating income. Assume that all units started were completed and sold during the year, and that there were no ending inventories in any manufacturing related accounts. Assume that total actual MOH = total applied MOH. Revenue for 2025 totaled, $2,100,000.

Question

Pedalless Bicycle Corporation, manufactures motor-assisted bicycles. Pedalless began operations on January 1, 2025. During 2025, Pedalless incurred the following costs:
  Required:
a. Complete the above table by classifying each cost as either a product cost or a period cost; for items classified as product costs, further classify as a direct cost or an indirect cost.
b. Calculate total direct costs and total indirect (MOH) costs.
c. For year ended December 31, 2025, determine gross margin and operating income. Assume that all units started were completed and sold during the year, and that there were no ending inventories in any manufacturing related accounts. Assume that total actual MOH = total applied MOH. Revenue for 2025 totaled, $2,100,000.

Quizplus · Accepted Answer

The Answer of Pedalless Bicycle Corporation, manufactures motor-assisted bicycles. Pedalless began operations on January 1, 2025. During 2025, Pedalless incurred the following costs:
  Required:
a. Complete the above table by classifying each cost as either a product cost or a period cost; for items classified as product costs, further classify as a direct cost or an indirect cost.
b. Calculate total direct costs and total indirect (MOH) costs.
c. For year ended December 31, 2025, determine gross margin and operating income. Assume that all units started were completed and sold during the year, and that there were no ending inventories in any manufacturing related accounts. Assume that total actual MOH = total applied MOH. Revenue for 2025 totaled, $2,100,000.

Pedalless Bicycle Corporation, Manufactures Motor-Assisted Bicycles