Question

Your manufacturing facility produces three styles of coffee tables for its customers. All three of the tables use the same Baltic birch plywood oval and then are treated differently to create the final products. The Waltons model has a natural wood finish and wooden legs. The jetsons model has aluminum sheet laminated to the wood base and aluminum legs. The Miami vice model has hot pink finish applied and black iron legs. The plywood ovals are manufactured in a process environment. Then, they are transferred to the next department where they undergo transformation into the finished products. The second department is a job-order cost environment.

Using the data on this page, prepare the process cost summary on the blank form provided. Then, using your answer from the process cost summary and other information provided, complete the job-order cost report by computing manufacturing cost per unit for each of the three models. Please not that the job order cost report is not complete – you’ll need to add some lines to arrive at your final manufacturing costs per unit.

Raw materials Factory overhead

Beginning RM Inventory 16,960 Indirect materials used 174,300

Rm Purchases (on credit) 452,100 Indirect labor used 95,700

Direct material used 247,620 other overhead costs 186,550

Indirect materials used 174,400 Total overhead incurred 456,550

Ending RM Inventory 47,040                                              

Factory Payroll Factory overhead (Applied at180%DL 467,730)

Direct Labor used 259,850 Direct Labor used 259,850

Indirect Labor used 95,700 overhead applied 467,730

Total payroll 355,550 total conversion 727,580

Units Costs

Beginning WIP 5,200 Beginning WIP- DM 12900

Started into production 20,300 Beginning WIP conversion 27,100

Ending WIP 4,500 Total 40,000

Ending WIP DM added-247,620

90 percent complete with respect to direct Conversion added- 727,580

Materials Total costs- 1,015,200

40 percent complete with respect to

conversion   

Answer 1