Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Fatboy 2,000 $ 2,000 Screamer Total Number of units assembled 6,000 4,000 $ 3,000 Materials cost per unit Other costs: Direct labor Indirect materials $6,000,000 1,800,000 4,200,000 Other overhead Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Fatboy 2,000 $ 2,000 Screamer Total Number of units assembled 6,000 4,000 $ 3,000 Materials cost per unit Other costs: Direct labor Indirect materials $6,000,000 1,800,000 4,200,000 Other overhead Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same
plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are
available for August:
Fatboy
2,000
$ 2,000
Screamer
Total
Number of units assembled
6,000
4,000
$ 3,000
Materials cost per unit
Other costs:
Direct labor
Indirect materials
$6,000,000
1,800,000
4,200,000
Other overhead
Required:
Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of
each model assembled in August.
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