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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

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
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
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education