Question

Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows:

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a. Develop a graph for each product (three graphs) with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Use this information to determine Alvarez Manufacturing Inc.’s cost performance over time for the three products.
b. What additional information would you require in order to investigate Alvarez Manufacturing Inc.’s cost performance more precisely?

Job No.
Product
Quantity
Date
Amount
$16,120
Jan. 2
1
TT
520
1,610
Jan. 15
22
20,125
Feb. 3
30
1,420
25,560
Mar. 7
670
15,075
41
TT
Mar. 24
SLK
2,210
49
22,100
SLK
31,875
May 19
58
2,550
June 12
65
TT
620
10,540
Aug. 18
Sept. 2
78
SLK
3,110
48,205
82
SS
1,210
16,940
750
Nov. 14
92
TT
8,250
52,650
Dec. 12
98
SLK
2,700
Expand
Transcribed Image Text

Job No. Product Quantity Date Amount $16,120 Jan. 2 1 TT 520 1,610 Jan. 15 22 20,125 Feb. 3 30 1,420 25,560 Mar. 7 670 15,075 41 TT Mar. 24 SLK 2,210 49 22,100 SLK 31,875 May 19 58 2,550 June 12 65 TT 620 10,540 Aug. 18 Sept. 2 78 SLK 3,110 48,205 82 SS 1,210 16,940 750 Nov. 14 92 TT 8,250 52,650 Dec. 12 98 SLK 2,700

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