Exercise 6-50 (Algo) Operations Costing (LO 6-6) S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company’s Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available: SL1 SL2 Total Number assembled 1,600 2,100 3,700 Materials cost per tractor $ 1,200 $ 1,700 Other costs: Direct labor $ 1,500,000 Supplies 540,000 Other overhead 2,585,000 Required: S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.
Exercise 6-50 (Algo) Operations Costing (LO 6-6) S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company’s Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available: SL1 SL2 Total Number assembled 1,600 2,100 3,700 Materials cost per tractor $ 1,200 $ 1,700 Other costs: Direct labor $ 1,500,000 Supplies 540,000 Other overhead 2,585,000 Required: S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 6-50 (Algo) Operations Costing (LO 6-6)
S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company’s Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available:
| SL1 | SL2 | Total | |||||||
| Number assembled | 1,600 | 2,100 | 3,700 | ||||||
| Materials cost per tractor | $ | 1,200 | $ | 1,700 | |||||
| Other costs: | |||||||||
| Direct labor | $ | 1,500,000 | |||||||
| Supplies | 540,000 | ||||||||
| Other overhead | 2,585,000 | ||||||||
Required:
S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.
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