Question

Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are vastable for August Fatboy Screamer 6921,380 $2,500 $3,5ee Total 2,070 Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead $2,235.ee 372.com 1,117, see Required: Howrley David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August Fatboy Screamer Total Operation cost Total cost

Answer 1

Solution:

Conversion cost per unit = (2235600+372600+1117800) / 2070 = $1800

1 AK УИ Fatbot Streamer Total 1242000 2484000 3726000 Operation cost (conversion cost per unit*number of units) Materials cost (Materials cost per unit*number of units) Total cost Number of units Unit cost 1725000 4830000 6555000 14 2967000 690 4300.00 7314000 10281000 1380 2070 5300.00 9600.00 15 18 19 20 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Sheet230 Sheet136 Sheet36 (29) Sheet259 Sheet