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 $17 $24 Other costs: Direct labor $ 57,500 Indirect materials 17,300 Overhead 41,200 Total $ 116,000 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 $17 $24 Other costs: Direct labor $ 57,500 Indirect materials 17,300 Overhead 41,200 Total $ 116,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $17 | $24 | |||||||
| Other costs: | |||||||||
| Direct labor | $ | 57,500 | |||||||
| Indirect materials | 17,300 | ||||||||
| 41,200 | |||||||||
| Total | $ | 116,000 | |||||||
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.
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