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In: Accounting
Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three...
Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation-costing system. The production process includes an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the Standard model is sold after this operation. During the trim operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finish operation where the padding is added. All of the units produced receive the same steps within each operation. The May production run had a total manufacturing cost of $979,690. The units of production and direct-material costs incurred were as follows:
| Units Produced | Extrusion Materials | Form Materials | Trim Materials | Finish Materials | ||||||||||
| Plastic sheets | 4,800 | $ | 57,600 | |||||||||||
| Standard model | 5,800 | 69,600 | $ | 23,200 | ||||||||||
| Deluxe model | 3,400 | 40,800 | 13,600 | $ | 10,200 | |||||||||
| Executive model | 1,900 | 22,800 | 7,600 | 5,700 | $ | 11,400 | ||||||||
| Total | 15,900 | $ | 190,800 | $ | 44,400 | $ | 15,900 | $ | 11,400 | |||||
Manufacturing costs applied during the month of May were as follows:
| Extrusion Operation | Form Operation | Trim Operation | Finish Operation | |||||||||||||
| Direct labor | $ | 232,140 | $ | 57,000 | $ | 31,270 | $ | 17,100 | ||||||||
| Manufacturing overhead | 238,500 | 76,200 | 40,280 | 24,700 | ||||||||||||
Required:
1. For each product produced by Plasto Corporation during the month of May, determine the (a) unit cost and (b) total cost. Be sure to account for all costs incurred during the month. (Round "Unit costs" to 2 decimal places.)
2. Prepare journal entries to record the flow of production costs during May.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three...
Plasto Corporation manufactures a variety of plastic products,
including a series of molded chairs. The three models of molded
chairs, which are all variations of the same design, are Standard
(can be stacked), Deluxe (with arms), and Executive (with arms and
padding). The company uses batch manufacturing and has an
operation-costing system. The production process includes an
extrusion operation and subsequent operations to form, trim, and
finish the chairs. Plastic sheets are produced by the extrusion
operation, some of which...
Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three...
Plasto Corporation manufactures a variety of plastic products,
including a series of molded chairs. The three models of molded
chairs, which are all variations of the same design, are Standard
(can be stacked), Deluxe (with arms), and Executive (with arms and
padding). The company uses batch manufacturing and has an
operation-costing system. The production process includes an
extrusion operation and subsequent operations to form, trim, and
finish the chairs. Plastic sheets are produced by the extrusion
operation, some of which...
Plasticon manufactures plastic containers used to package a variety of liquid consumer products (such as fabric...
Plasticon manufactures plastic containers used to package a
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Chow Corporation manufactures children's chairs made PVS of
plastic tubing and heavy canvas material. Each chair requires eight
feet of the PVC tubing and three yards of material. Budgeted sales
are 20,000 chairs for June, 25,000 chairs for July and 30,000
chairs for August. Ending finished goods inventory is budgeted at
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Southern Glass manufactures glass bottles for a variety of products, including perfume bottles and liquor bottles....
Southern Glass manufactures glass bottles for a variety of
products, including perfume bottles and liquor bottles. The company
has two profit centers: production and labeling. The production
department melts the raw materials, adding metal oxides to produce
different colors if desired. It then uses a continuous rolling
process to shape the bottles. Production then transfers the bottles
to the labeling department at an average cost of $15 ($12 variable;
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Southern Glass manufactures glass bottles for a variety of products, including perfume bottles and liquor bottles....
Southern Glass manufactures glass bottles for a variety of
products, including perfume bottles and liquor bottles. The company
has two profit centers: production and labeling. The production
department melts the raw materials, adding metal oxides to produce
different colors if desired. It then uses a continuous rolling
process to shape the bottles. Production then transfers the bottles
to the labeling department at an average cost of $15 ($12 variable;
$3 fixed) per case. The labeling department then paints or attaches...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., manufactures plastic mats to use with
rolling office chairs. Its standard cost information for last year
follows:
Standard Quantity
Standard Price (Rate)
Standard Unit Cost
Direct materials (plastic)
12
sq ft.
$
1.10
per sq. ft.
$
13.20
Direct labor
0.25
hr.
$
13.20
per hr.
3.30
Variable manufacturing overhead (based on direct labor
hours)
0.25
hr.
$
2.20
per hr.
0.55
Fixed manufacturing overhead ($579,080 ÷ 934,000 units)
0.62
Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., manufactures plastic mats to use with rolling
office chairs. Its standard cost information for last year
follows:
Standard Quantity
Standard Price (Rate)
Standard Unit Cost
Direct materials (plastic)
10
sq ft.
$
0.82
per sq. ft.
$
8.20
Direct
labor
0.25
hr.
$
10.20
per hr.
2.55
Variable manufacturing overhead (based on direct labor hours)
0.25
hr.
$
1.40
per hr.
0.35
Fixed
manufacturing overhead $270,600 ÷ 902,000 units)
0.30
Parker Plastic had the following actual results...
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information...
Parker Plastic, Inc., manufactures plastic mats to use with
rolling office chairs. Its standard cost information for last year
follows: Standard Quantity Standard Price (Rate) Standard Unit Cost
Direct materials (plastic) 9 sq ft. $ 1.30 per sq. ft. $ 11.70
Direct labor 0.3 hr. $ 13.50 per hr. 4.05 Variable manufacturing
overhead (based on direct labor hours) 0.3 hr. $ 1.30 per hr. 0.39
Fixed manufacturing overhead ($619,080 ÷ 938,000 units) 0.66 Parker
Plastic had the following actual results...
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