19.7

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 1 520 $16,120 Jan. 15 22 E SS 20,125 Feb. 3 30 SS 1,610 1,420 Mar. 7 41 TT 25,560 15,075 670 Mar. 24 49 SLK 2,210 22,100 May 19 58 SLK 2,550 31,875 June 12 65 TT 620 78 SLK SS Nov. 14 92 TT 10,540 Aug. 18 3,110 48,205 Sept. 2 82 1,210 16.940 750 8,250 98 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 Unlt 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 Dec. 12 SLK cent. Job No. Unit Cost 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 31 1 22 13 X 30 18 41 23 x 49 10 58 13 X 65 17 78 16 X 82 14 92 11 98 20 X b. Where is the best place to look to investigate Alvarez Manufacturing's cost performance more precisely? Material ledger X