Assessment 2 Part 2: Operations Costing

Assessment 2 Pa

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rt 2: Operations Costing

Assessment 2 Part 2: Operations Costing
Assessment 2 Part 2: Operations Costing

Assessment 2 Part 2: Operations Costing

Scenario:
Nevada Instruments manufactures two models of calculators. The finance model is the Financial 5 and the scientific model is the Scientific 6. 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 August:
 Financial 5  Scientific 6 Total
Number of units 11,000 44,000     55,000
Parts cost per unit      $25      $30
Other costs:
Direct labor $  68,200
Indirect materials     19,250
Overhead     77,550
Total $165,000
REQUIRED
Nevada Instruments uses operations costing and assigns conversion costs based on the number of units assembled.
Compute the cost per unit of the Financial 5 and Scientific 6 models for August. Show all calculations.
Answers
Financial 5
Scientific 6

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