During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 3,600 units of Model A and 13,600 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 $18,000 131,400 24,300 $350,000 35,000 $36,200 00 160,000 40,000 40,000 195,000 10,500 9,000 14,400 $705,000 $282,600 $76,200 $30,000 $1,093,800 Order processing Production planning. Purchasing Model A Model B Stamping Welding Cladding Testing Packaging and shipping Invoicing Total 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 Other Model A Model B $18,000 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 100 Unit Cost Total Cost $18,000 131,400 24,300 439,200 252,000 195,000 10,500 9,000 14,400 12,000 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 the nearest dollar amount..
During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 3,600 units of Model A and 13,600 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 $18,000 131,400 24,300 $350,000 35,000 $36,200 00 160,000 40,000 40,000 195,000 10,500 9,000 14,400 $705,000 $282,600 $76,200 $30,000 $1,093,800 Order processing Production planning. Purchasing Model A Model B Stamping Welding Cladding Testing Packaging and shipping Invoicing Total 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 Other Model A Model B $18,000 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 100 Unit Cost Total Cost $18,000 131,400 24,300 439,200 252,000 195,000 10,500 9,000 14,400 12,000 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 the nearest dollar amount..
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:valde ou cam Costry Objective
During the week of June 12, Harrison Manufacturing produced and shipped 17,200 units of its aluminum wheels: 3,600 units of Model A and 13,600 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:
Order processing
Production planning
Purchasing
Stamping
Model A
Model B
Materials
$350,000
160,000
195,000
Model A
Model B
Unit Cost
Salaries/
Wages
$18,000
131,400
24,300
35,000
40,000
$705,000
Machining
10,500
9,000
14,400
$282,600
$36,200
40,000
Welding
Cladding
Testing
Packaging and shipping
Invoicing
Total
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
Other
$76,200
$18,000
12,000
Total Cost
$18,000
131,400
$30,000
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
24,300
439,200
252,000
195,000
10,500
9,000
14,400
$1,093,800
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 the
nearest dollar amount.
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