During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 4,400 units of Model A and 12,800 units of Model B. The cycle time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000. The following costs were incurred: Salaries/ Materials Wages Machining other Total Cost Order processing $18,600 $18,600 Production planning 167,400 167,400 Purchasing 22,500 22,500 Stamping $370,000 37,000 $36,200 $18,200 461,400 Welding 160,000 41,000 41,000 12,000 254,000 Cladding 215,000 215,000 Testing 10,000 10,000 Packaging and shipping 8,000 8,000 Invoicing 13,000 13,000 Total $745,000 $317,500 $77,200 $30,200 $1,169,900 Required: 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. Round your answer to the nearest dollar amount. per unit 2. Model A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Unit Cost Model A Model B

During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 4,400 units of Model A and 12,800 units of Model B. The cycle time for Model A is 0.80 hours and that of Model B is 0.55 hours. The total net work hours for the aluminum wheel value stream for the week were 15,000. The following costs were incurred: Salaries/ Materials Wages Machining other Total Cost Order processing $18,600 $18,600 Production planning 167,400 167,400 Purchasing 22,500 22,500 Stamping $370,000 37,000 $36,200 $18,200 461,400 Welding 160,000 41,000 41,000 12,000 254,000 Cladding 215,000 215,000 Testing 10,000 10,000 Packaging and shipping 8,000 8,000 Invoicing 13,000 13,000 Total $745,000 $317,500 $77,200 $30,200 $1,169,900 Required: 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. Round your answer to the nearest dollar amount. per unit 2. Model A is responsible for 40 percent of the materials cost. Using the average conversion cost approach, calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Unit Cost Model A Model B

Name: 3. What if Model A and Model B are not homogeneous products? Assume t
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Description: 3. What if Model A and Model B are not homogeneous products? Assume the same materials usage as in Requirement 2. Use DBC to calculate the unit cost for the two products. Round your interim calculations and final answers to thenearest dollar amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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