Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. 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 June: Fin-X Sci-X Total Number of units 15,000 43,000 58,000 Parts cost per unit $21 $29 Other costs: Direct labor $ 52,000 Indirect materials 15,700 Overhead 106,300 Total $ 174,000 Required: Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.
Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. 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 June: Fin-X Sci-X Total Number of units 15,000 43,000 58,000 Parts cost per unit $21 $29 Other costs: Direct labor $ 52,000 Indirect materials 15,700 Overhead 106,300 Total $ 174,000 Required: Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.
Chapter6: Activity-based, Variable, And Absorption Costing
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Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. 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 June:
| Fin-X | Sci-X | Total | |||||||
| Number of units | 15,000 | 43,000 | 58,000 | ||||||
| Parts cost per unit | $21 | $29 | |||||||
| Other costs: | |||||||||
| Direct labor | $ | 52,000 | |||||||
| Indirect materials | 15,700 | ||||||||
| 106,300 | |||||||||
| Total | $ | 174,000 | |||||||
Required:
Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.
Expert Solution
Step 1
Cost per unit = Material (Parts) Cost per unit + Conversion Costs (Direct Labor + Indirect Materials + Overhead) per unit.
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