Accounting Case : Tijuana Bronze Machine

2779 Words Nov 10th, 2014 12 Pages
Accounting Case: Tijuana Bronze Machine

Name:

Course:

Professor:

Date Due:

Introduction
Tijuana Bronze Machining was founded in San Diego, California in 1984 by its current president Herb Alpert. It specializes in the cutting of precious stones and the manufacture of pump parts, valves and flow controllers.
1. Exhibit 1a
Product Cost Per Unit Valves Pumps Flow Cont Total
Material ($) 16 20 22 58
Run Labor hrs 0.25 0.5 0.4 1.15
Machine hrs 0.5 0.5 0.2 1.2
Receiving O/H 0.1 0.3 3.9 4.28
Material handling
Once per receipt 0.48 1.8 23.40 25.70
Once per production run 0.32 1.2 15.60 17.14
Packing and Shipping 0.3 1.1 11.0 12.37
Engineering 2.67 2.4 12.5 17.57
Maintenance 1.4 1.4 0.5 3.32
Depreciation 1.3 1.3 0.5 2.99 Production cost per unit 23.28 30.49 89.95 143.72

The materials used per unit of production, the Run labor hours and machine hours are provided in exhibit 2. The overhead expenses per unit of the product have been apportioned according to their percentage production and usage. (Drucker, 1999)
The receiving overhead per unit of Valves produced = (0.03 X 20,000)/ 7500 = $0.1
The receiving overhead per unit of Pumps produced = (0.19 X 20,000)/ 12500 = $0.3
The receiving overhead per unit of Flow Controllers produced = (0.78 X 20,000)/ 4000 = $3.9
The material handling expenses have been divided into two. The first group has been apportioned 60% of the total expenses which amounted to $120,000 of the total $200,000 while the second…

More about Accounting Case : Tijuana Bronze Machine

Open Document