Question

topic:- integrated Enterprise Systems * no hand writing *the answer must be unique not copied “plagiarized...

topic:- integrated Enterprise Systems

* no hand writing

*the answer must be unique not copied “plagiarized “


SAM creates a production order for the requested 12 cars. For each car, raw materials are expected to cost $750, wheel assemblies (semi finished goods) $430. The actual time (labor) required to build one car is 49 minutes and hourly rate is $50

Calculate the estimated cost of the production order and provide the financial impact using" T" account

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Answer #1

From the given data,

Total production order is for 12 cars.

Expected to cost for raw materials- $750

For wheel assemblies- $430

Time to build one car for 1 hour is $50

For 49 minutes- $40.8

The estimated cost of the production order is

Raw materials+ wheel assemblies+ labour charges

=> $750+$430+$40.8

= $1220.8 (for one car production)

for 12 cars,

12x1220.8= $14,649.60

Impact using T account

Manufacturing process of cars

(Raw materials)- $ 750

(Wheel assemblies) - $ 430

(Labour charges) - $ 40.8

  Total - $ 1220.8

Total for 12 cars production - $ 14,649.60

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