Value-Stream Costing Objective During the week of June 12, Harrison Manufacturin
ID: 337740 • Letter: V
Question
Value-Stream Costing Objective
During the week of June 12, Harrison Manufacturing produced and shipped 17,800 units of its aluminum wheels: 4,600 units of Model A and 13,200 units of Model B. The following costs were incurred:
Required:
Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations.
1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost.
$ per unit
2. Calculate the unit cost for Models A and B.
3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B.
Calculate the total unit cost for Models A and B.
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1. The unit cost of products in a value stream is the actual value-stream cost divided by the units shipped for a given time period.
2. Review what you have learned about value stream costing for multiple products in the chapter.
3. If materials costs are significantly different for multiple products, the unit cost is the average conversion cost plus the unit materials cost.
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001_Cornerstone Exercise 15.02 Algorithmic
Value-Stream Costing Objective
During the week of June 12, Harrison Manufacturing produced and shipped 17,800 units of its aluminum wheels: 4,600 units of Model A and 13,200 units of Model B. The following costs were incurred:
Materials Salaries/Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 304,800 304,800 Purchasing 23,400 23,400 Stamping $380,000 38,000 $37,000 $18,000 473,000 Welding 150,000 18,750 14,000 12,000 194,750 Cladding 65,000 65,000 Testing 10,000 10,000 Packaging and shipping 10,000 10,000 Invoicing 14,200 14,200 Total $595,000 $438,550 $51,000 $30,000 $1,114,550
Required:
Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations.
1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost.
$ per unit
2. Calculate the unit cost for Models A and B.
Unit Cost Model A $ Model B $3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B.
Unit Cost Model A $ Model B $Calculate the total unit cost for Models A and B.
Unit Cost Model A $ Model B $Explanation / Answer
Value-Stream Costing Objective
During the week of June 12, Harrison Manufacturing produced and shipped 17,800 units of its aluminum wheels: 4,600 units of Model A and 13,200 units of Model B. The following costs were incurred:
Required:
Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations.
1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost.
$ per unit
2. Calculate the unit cost for Models A and B.
3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B.
Calculate the total unit cost for Models A and B.
Hide Feedback
Partially Correct
Check My Work Feedback
1. The unit cost of products in a value stream is the actual value-stream cost divided by the units shipped for a given time period.
2. Review what you have learned about value stream costing for multiple products in the chapter.
3. If materials costs are significantly different for multiple products, the unit cost is the average conversion cost plus the unit materials cost.
Check My Work
Icon Key
001_Cornerstone Exercise 15.02 Algorithmic
Value-Stream Costing Objective
During the week of June 12, Harrison Manufacturing produced and shipped 17,800 units of its aluminum wheels: 4,600 units of Model A and 13,200 units of Model B. The following costs were incurred:
Materials Salaries/Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 304,800 304,800 Purchasing 23,400 23,400 Stamping $380,000 38,000 $37,000 $18,000 473,000 Welding 150,000 18,750 14,000 12,000 194,750 Cladding 65,000 65,000 Testing 10,000 10,000 Packaging and shipping 10,000 10,000 Invoicing 14,200 14,200 Total $595,000 $438,550 $51,000 $30,000 $1,114,550
Required:
Note: Round ALL interim calculations to two decimal places. Uses these values in subsequent computations.
1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost.
$ per unit
2. Calculate the unit cost for Models A and B.
Unit Cost Model A $ Model B $3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B.
Unit Cost Model A $ Model B $Calculate the total unit cost for Models A and B.
Unit Cost Model A $ Model B $Related Questions
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