During the week of June 12, Harrison Manufacturing produced and shipped 16,000 units of its aluminum wheels: 3,400 units of Model A and 12,600 units of Model B. The following costs were incurred: Materials Salaries/Wages Machining Other Total Cost Order processing $19,400 $19,400 Production planning 34,800 34,800 Purchasing 23,400 23,400 Stamping $380,000 38,000 $36,200 $18,000 472,200 Welding 160,000 20,000 16,000 12,000 208,000 Cladding 65,000 65,000 Testing 10,000 10,000 Packaging and shipping 10,000 10,000 Invoicing 14,200 14,200 Total $605,000 $169,800 $52,200 $30,000 $857,000 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. Unit cost is $ 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 $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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During the week of June 12, Harrison Manufacturing produced and shipped 16,000 units of its aluminum wheels: 3,400 units of Model A and 12,600 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. 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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