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'm trying to find the product cost of the P28 product for the two different plants listed in the question (Moncton, and Fredericton). The pictures I included contain the information frm the question. I'm confused on how to use the information provided to come up with my two answers. I've provided all information available.

'm trying to find the product cost of the P28 product for the two different plants listed in the question (Moncton, and Fredericton). The pictures I included contain the information frm the question. I'm confused on how to use the information provided to come up with my two answers. I've provided all information available.

FINANCIAL ACCOUNTING
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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I'm trying to find the product cost of the P28 product for the two different plants listed in the question (Moncton, and Fredericton). The pictures I included contain the information frm the question. I'm confused on how to use the information provided to come up with my two answers. I've provided all information available. 

Integrative Cases 6-63 (Algo) Product Costing and Decision Making (LOo 6-1, 2, 3, 4) Brunswick Parts Isa small manufacturing firm located In eastern Canada. The company, founded in 1947, produces metal parts for many of the larger manufacturing firms located in both Canada and the United States. It prides Itself on high quality and customer service, and many of Its customers have been buying at least some of their parts from Brunswick siınce the 1950s. Production of the parts takes place in one of two plants. The older plant, located in Fredericton, was purchased when the company was founded, and the last major Improvements to the plant took place In the 1970s. A newer plant, located In Moncton, was bult in 1995 to take advantage of the expanding markets. The same part can be produced in either plant, and the final schedulng decision Is based on capacity, transportation costs, and production costs. At a weekly production meeting, Sara Hunter, the manufacturing manager expresses her frustration at trying to schedule production. Something isn't right. We buld a new plant to take advantage of new manufacturing technology and we struggle to keep It filled. We didn't have this problem a few years ago when we couldn't keep up with demand, but with the current economy, marketing keeps sending orders to the old plant In Fredericton. I know manufacturing, but I guess I must not understand accounting. The latest order that generated discussion among plant management was placed by Lawrence Machine Tool Company, a long-time customer. The order called for 1,000 units of a special rod (P28) used In one of Its many products. The order was recelved by the marketing department. Following the established procedure at Brunswick, the marketing manager checked the product costs for both plants. Because quality and transportation costs would be the same from either plant, a decision was made to produce and ship from the Fredericton plant. The cost system at Brunswick Is a traditional manufacturing cost system. Plant overhead (Including plant depreciation) Is allocated to products based on estimated production for the perlod. Separate overhead rates are computed for each plant. Corporate administration costs are allocated to the plants based on the estimated production In the plant for purposes of executive performance measurement. Production is measured by direct labor-hours. Cost and production Information for P28 follows.
Transcribed Image Text:Integrative Cases 6-63 (Algo) Product Costing and Decision Making (LOo 6-1, 2, 3, 4) Brunswick Parts Isa small manufacturing firm located In eastern Canada. The company, founded in 1947, produces metal parts for many of the larger manufacturing firms located in both Canada and the United States. It prides Itself on high quality and customer service, and many of Its customers have been buying at least some of their parts from Brunswick siınce the 1950s. Production of the parts takes place in one of two plants. The older plant, located in Fredericton, was purchased when the company was founded, and the last major Improvements to the plant took place In the 1970s. A newer plant, located In Moncton, was bult in 1995 to take advantage of the expanding markets. The same part can be produced in either plant, and the final schedulng decision Is based on capacity, transportation costs, and production costs. At a weekly production meeting, Sara Hunter, the manufacturing manager expresses her frustration at trying to schedule production. Something isn't right. We buld a new plant to take advantage of new manufacturing technology and we struggle to keep It filled. We didn't have this problem a few years ago when we couldn't keep up with demand, but with the current economy, marketing keeps sending orders to the old plant In Fredericton. I know manufacturing, but I guess I must not understand accounting. The latest order that generated discussion among plant management was placed by Lawrence Machine Tool Company, a long-time customer. The order called for 1,000 units of a special rod (P28) used In one of Its many products. The order was recelved by the marketing department. Following the established procedure at Brunswick, the marketing manager checked the product costs for both plants. Because quality and transportation costs would be the same from either plant, a decision was made to produce and ship from the Fredericton plant. The cost system at Brunswick Is a traditional manufacturing cost system. Plant overhead (Including plant depreciation) Is allocated to products based on estimated production for the perlod. Separate overhead rates are computed for each plant. Corporate administration costs are allocated to the plants based on the estimated production In the plant for purposes of executive performance measurement. Production is measured by direct labor-hours. Cost and production Information for P28 follows.
Per unit of P28 Moncton Fredericton Direct material (1 kilogram @ $22) $22 5 hours $22 Direct labor-hours 6 hours Direct labor wage rate $8 $9 Corporate and plant overhead budgets are as follows: Corporate Administration Moncton Fredericton Corporate Marketing $220, 900 170, 000 170, e00 220, 000 R&D Depreciation General administration Plant overhead (before corporate allocations): Supervision 170, 000 270, eee 758, 000 170, e0e $220, 000 406, 000 Indirect labor Depreciation 120, 000 Miscellaneous 220, a0e Total $780, eee $1,368, 000 $956, 8e৪ Estimated production (direct labor-hours): 114,eee 138, 00e Requlred: a. What would be the reported product cost of P28 per unit for the two plants? Product Cost Moncton per unit Fredericton per unit
Transcribed Image Text:Per unit of P28 Moncton Fredericton Direct material (1 kilogram @ $22) $22 5 hours $22 Direct labor-hours 6 hours Direct labor wage rate $8 $9 Corporate and plant overhead budgets are as follows: Corporate Administration Moncton Fredericton Corporate Marketing $220, 900 170, 000 170, e00 220, 000 R&D Depreciation General administration Plant overhead (before corporate allocations): Supervision 170, 000 270, eee 758, 000 170, e0e $220, 000 406, 000 Indirect labor Depreciation 120, 000 Miscellaneous 220, a0e Total $780, eee $1,368, 000 $956, 8e৪ Estimated production (direct labor-hours): 114,eee 138, 00e Requlred: a. What would be the reported product cost of P28 per unit for the two plants? Product Cost Moncton per unit Fredericton per unit
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