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 datareflect expected operations for the next year.Number assembledMaterials cost per RVOther costs:Direct laborDepreciationMiscellaneous costsXC-254$40,000XC-6Operation costMaterials costTotal costUnit cost39$70,000Total93$905,550735, 120633, 180Required:Piper Recreational Vehicles uses operations costing and assigns conversion costs based on the number of unitsassembled. Compute the expected cost of each model assembled next year.X Answer is complete but not entirely correct.XC-2XC-6$ 1,320,408X $2,160,000$ 3,480,408X $ 3,683,428X$ 64,452 X $ 94,448 XTotal953,428X $ 2,273,8362,730,000

Material and conversion costs are the main types of expenses encountered in manufacturing…

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 Operation cost Materials cost Total cost Unit cost XC-6 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 Total $ 1,320,408X $ 953,428X $ 2,273,836 2,160,000✔ 2,730,000 $ 3,480,408X $ 3,683,428X $ 64,452 X $ 94,448 X

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 Operation cost Materials cost Total cost Unit cost XC-6 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 Total $ 1,320,408X $ 953,428X $ 2,273,836 2,160,000✔ 2,730,000 $ 3,480,408X $ 3,683,428X $ 64,452 X $ 94,448 X

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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