Assume that a value stream in Kendall Company has two products (Product 1 and Product 2) with material costs of $60,000 (Product 1) and $240,000 (Product 2) for a given week. The conversion costs for the week amounted to $300,000. There were 4,000 units of Product 1 that were produced and shipped to customers. For the second product, 8,000 units were produced and shipped. Product 1 has a cycle time of 0.5 hours, and Product 2 has a cycle time of 1 hour. The net production hours for the stream totaled 10,000 hours. Calculate the total value-stream cost per unit for Product 2 using duration-based costing (DBC). (Note: Round calculations to two decimal places.) Oa. 130.00 per unit Ob. $60.00 per unit Oc. $40.00 per unit Od. $55.00 per unit
Assume that a value stream in Kendall Company has two products (Product 1 and Product 2) with material costs of $60,000 (Product 1) and $240,000 (Product 2) for a given week. The conversion costs for the week amounted to $300,000. There were 4,000 units of Product 1 that were produced and shipped to customers. For the second product, 8,000 units were produced and shipped. Product 1 has a cycle time of 0.5 hours, and Product 2 has a cycle time of 1 hour. The net production hours for the stream totaled 10,000 hours. Calculate the total value-stream cost per unit for Product 2 using duration-based costing (DBC). (Note: Round calculations to two decimal places.) Oa. 130.00 per unit Ob. $60.00 per unit Oc. $40.00 per unit Od. $55.00 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that a value stream in Kendall Company has two products (Product 1 and Product 2) with material costs of $60,000 (Product 1) and $240,000
(Product 2) for a given week. The conversion costs for the week amounted to $300,000. There were 4,000 units of Product 1 that were produced and
shipped to customers. For the second product, 8,000 units were produced and shipped. Product 1 has a cycle time of 0.5 hours, and Product 2 has a
cycle time of 1 hour. The net production hours for the stream totaled 10,000 hours.
Calculate the total value-stream cost per unit for Product 2 using duration-based costing (DBC). (Note: Round calculations to two decimal places.)
Oa. 130.00 per unit
Ob. $60.00 per unit
Oc. $40.00 per unit
Od. $55.00 per unit
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