Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining detail that are used. The following data reflect expected operations for the next year. Number assembled Materials cost per RV other costs: Direct labor Depreciation Miscellaneous costs Operation cost Materials cost Total cost Unit cost XC-2 XC-2 54 $ 40,000 XC-6 39 $ 70,000 Required: Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of urlits assembled. Compute the expected cost of each model assembled next year. XC-6 Total 93 $ 905,550 735, 120 633,180 Total

Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining detail that are used. The following data reflect expected operations for the next year. Number assembled Materials cost per RV other costs: Direct labor Depreciation Miscellaneous costs Operation cost Materials cost Total cost Unit cost XC-2 XC-2 54 $ 40,000 XC-6 39 $ 70,000 Required: Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of urlits assembled. Compute the expected cost of each model assembled next year. XC-6 Total 93 $ 905,550 735, 120 633,180 Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Subject: acounting
Please do not give solution in image format thanku
Leach Finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follow: X-12 $35 $ 20 18.0 Price per fitting Variable cost per fitting Units per hour of grinding The testing machine used for both models has a capacity of 3,230 hours annually. Fixed manufacturing costs are $496,000 annually. Required A Required B X-24 $ 51 $ 27 12.5 Required: a. Suppose that Leach Finishing can sell at most 59,200 units of any one fitting. How many units of each fitting model should Leach Finishing produce annually? b. Suppose that Leach Finishing can sell at most 18,000 units of any one fitting. How many units of each fitting should Leach Finishing produce annually? X-30 $ 70 $ 44 10.0 Complete this question by entering your answers in the tabs below. X-12 X-24 X-30 units units units Suppose that Leach Finishing can…
Cost Accounting; Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly , its cost per rear wheel assembly is as follows (based on annual production of 2000 units); Direct materials-$28, Dirct labor-55, Variable overhead-23, Fixed overhead-43 Total=$149 Trailblazers has offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazer's offer would eliminate annual fixed overhead of $40,600. Required; a. Prepare a schedule that shows the total differential cost
Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining detail that are used. The following data reflect expected operations for the next year. Number assembled Materials cost per RV Other costs: Direct labor Depreciation Miscellaneous costs Operation cost Materials cost Total cost Unit cost XC-2 54 $ 40,000 XC-2 XC-6 39 $ 70,000 Required: es Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of units assembled. Compute the expected cost of each model assembled next year. XC-6 Total 93 $ $ 905,550 735, 120 633, 180 Total 0
Give me correct answer with explanation..
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: Number of units assembled Materials cost per unit Other costs: Direct labor Indirect materials Other overhead Operation cost Materials cost Total cost Number of units Unit cost Fatboy 1,050 $ 2,400 $3,400 Fatboy Screamer 2,100 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. Screamer Total Total 3,150 $3,591,000 598,500 1,795,500
Outsourcing (Make-or-Buy) Decision Mountain Air Limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of 10,000 units, the predicted cost per unit of an auto air purifier follows. Direct materials $9.00 Direct labor 1.40 Factory overhead 10.00 Total $ 20.40 These cost predictions include $80,000 in fixed factory overhead averaged over 10,000 units. The completed air purifier units include a battery-operated electric motor, which Mountain Air assembles with parts purchased from an outside vendar for $2.00 per motor. Mini Motor Company has offered to supply an assembled battery operated motor at a cost of $5.50 per unit, with a minimum annual order of 5,000 units. If Mountain Air accepts this offer, it will be able to reduce the variable labor and variable overhead casts of the auto air purifier by 50 percent. (a) Determine whether Mountain Air should continue to make the…
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 22,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.26. The unit cost is: Direct materials $0.77 Direct labor 0.29 Variable overhead 0.09 Fixed overhead 2.10 Total unit cost $3.25 Required: 1. What are the alternatives for Basu Company? 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. List the relevant cost(s) of external purchase. 3. Which alternative is more cost effective and by how much? ____ by 4. What if $19,240 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? ____ by
Vermont Instruments manufactures two models of calculators. The fiancé model is the Fin-X and the scientific model is the Sc-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June: Fin-X Sci-X Total Number of units 12,000 40,000 52,000 Parts cost per unit $25 $23 Other costs: Direct labor $53,000 Indirect materials 18,000 Overhead…
Piper Recreational Vehicles (PRV) modifies vans into recreational vehicles. PRV offers two models, the XC-2 and XC-6, which differ in the quality of the basic van and the workmanship and machining detail that are used. The following data reflect expected operations for the next year. Number assembled Materials cost per RV Other costs: Direct labor Depreciation Miscellaneous costs XC-2 54 $ 40,000 XC-6 Operation cost Materials cost Total cost Unit cost 39 $ 70,000 Total 93 $ 905,550 735, 120 633, 180 Required: Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of units assembled. Compute the expected cost of each model assembled next year. X Answer is complete but not entirely correct. XC-2 XC-6 $ 1,320,408X $ 2,160,000 $ 3,480,408X $ 3,683,428X $ 64,452 X $ 94,448 X Total 953,428X $ 2,273,836 2,730,000
Se.125.