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M Chapter 06 Fundamenta/X to.mheducation.com/hm.tpx ee Enterprises produces two

ID: 2579504 • Letter: M

Question

M Chapter 06 Fundamenta/X to.mheducation.com/hm.tpx ee Enterprises produces two models of lawn tractor SL1 and SL.2 The models are both produced in the company's Louisville factory and go through identical ass rations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is ava umber assembled Materials cost per tractor Other costs ,650 2,150 S 1,250 $ 1,750 3,800 Direct labor Supplies Other overhead $1,550,000 550,000 2,840,000 equired: Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled Compute the cost of each model assembled in Nov Operation cost Materials cost Total cost Number of units Unit cost References eBook & Resources e here to search

Explanation / Answer

Calculate cost of each model :

SL 1 SL 2 Total Operation cost 2145000 2795000 4940000 Material cost 2062500 3762500 5825000 Total cost 4207500 6557500 10765000 Number of units 1650 2150 Unit cost 2550 3050