Question

Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September:

	Molding	Grinding	Finishing
	Department	Department	Department
Direct materials	$142,200	$14,900	$8,900
Direct labor	14,600	33,800	23,700
Applied overhead	17,800	135,000	18,400

During September, 9,000 components were completed. There is no beginning or ending WIP in any department.

	Required:
1.	Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost.
2.	Calculate the unit cost. (Round the unit cost to two decimal places.)

Answer 1

given data

	molding depsrtment	grlning department	finishing department
direct material	142200	14900	8900
dirct labor	14600	33800	23700
aplied overheads	17800	135000	18400

no begining or ending wip in any departments

number of components completed = 9000

1) COMPUTATION OF TOTAL MANUFACTURING COST :

PARTICULARS	MOLDING DEPARTMENT	GRINDING DEPARTMENT	FINISHING DEPARTMENT
transferred from prior department	-	174600	358300
direct material	142200	14900	8900
direct labor	14600	33800	23700
applied overheads	17800	135000	18400
TOTAL MANUFACTURING COST	174600	358300	409300

2) COMPUTATION OF UNIT COST :

unit cost = total manufacturing cost / number of components completed

              = 409300 / 9000

              = 45.48 per unit (rounded off)