Amazon is producing three types of Kindle devices: Kindle Basic, Kindle Paperwhite, and Kindle Oasis. The following information is provided:

• Kindle Basic:
  • Direct Materials: $5,000,000
  • Direct Labor: $3,000,000
  • Overhead Rate: 150%
• Kindle Paperwhite:
  • Direct Materials: $8,000,000
  • Direct Labor: $5,000,000
  • Overhead Rate: 140%
• Kindle Oasis:
  • Direct Materials: $10,000,000
  • Direct Labor: $7,000,000
  • Overhead Rate: 130%

Requirements:

1. Calculate the total manufacturing cost for each device.
2. Determine the total overhead applied to each job.
3. Prepare a Job Cost Sheet for each device.
4. Compute the cost per unit if Amazon produces 1,000,000 units of Kindle Basic, 800,000 units of Kindle Paperwhite, and 500,000 units of Kindle Oasis.
5. Prepare an Income Statement reflecting these job costs.