Decision making with job order costs OBJ. 3 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:

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

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?