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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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	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