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 available for August: Fatboy 870 $ 2,300 Screamer 1,740 $ 3,300 Total 2,610 Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead $2,349,000 391,500 1,174,500 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 | $ 0 Operation cost Materials cost Total cost Number of units Unit cost

Answer 1

Calculate following

	Fatboy	Screamer	Total
Operation cost	1305000	2610000	3915000
Material cost	2001000	5742000	7743000
Total Cost	3306000	8352000	11658000
Number of units	870	1740
Unit cost	3800	4800