Chapter 17, Problem 17.28E

Operation costing. The Carter Furniture Company needs to determine the cost of two work orders for December 2017. Work Order 1200A is for 250 painted, unassembled chests and Work Order 1250A is for 400 stained, assembled chests. The following information pertains to these two work orders:

Required

1. 2. Using the information in requirement 1, calculate the budgeted cost of goods manufactured for the two December work orders.
2. 3. Calculate the cost per unassembled chest and assembled chest for Work Order 1200A and Work Order 1250A, respectively.

17-28 Operation costing. The Carter Furniture Company needs to determine the cost of two work orders for December 2017. Work Order 1200A is for 250 painted, unassembled chests and Work Order 1250A is for 400 stained, assembled chests. The following information pertains to these two work orders:

	Work Order 1200A	Work Order 1250A
Number of chests	250	400
Operations
1. Cutting	Use	Use
2. Painting	Use	Do not use
3. Staining	Do not use	Use
4. Assembling	Do not use	Use
6. Packaging	Use	Use

Selected budget information for December follows:

Budgeted conversion costs for each operation for December follow:

Cutting	$41,400
Painting	6,400
Staining	24,000
Assembling	33,000
Packaging	11,500