Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-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-XSci-XTotalNumber of units 15,000 43,000 58,000 Parts cost per unit $17 $24 Other costs: Direct labor $57,500 Indirect materials 17,300 Overhead 41,200 Total $116,000 Required:Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.

Operation cost for Fin-X = (Total other costs / Total no. of units) x No. of Fin-X units =…

Answered: Vermont Instruments manufactures two…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 12E

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Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-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		15,000		43,000		58,000
Parts cost per unit		$17		$24
Other costs:
Direct labor					$	57,500
Indirect materials						17,300
Overhead						41,200
Total					$	116,000

Required:

Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.

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