Question
10. Decision Making with Job Order Costs Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from
10. Decision Making with Job Order Costs
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. On your own paper, 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. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent.
Job No. | Unit Cost | ||||
1 | $ | ||||
22 | |||||
30 | |||||
41 | |||||
49 | |||||
58 | |||||
65 | |||||
78 | |||||
82 | |||||
92 | |||||
98 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started