Question
Analyze Midstate Containers Inc.'s process costs Midstate Containers Inc. manufactures cans for the canned food industry. The operations manager of a can manufacturing operation
Analyze Midstate Containers Inc.'s process costs Midstate Containers Inc. manufactures cans for the canned food industry. The operations manager of a can manufacturing operation wants to conduct a cost study investigating the relationship of tin content in the material (can stock) to the energy cost for enamelling the cans. The enameling was necessary to prepare the cans for labeling. A higher percentage of tin content in the can stock increases the cost of material. The operations manager believed that a higher tin content in the can stock would reduce the amount of energy used in enameling. During the analysis period, the amount of tin content in the steel can stock was increased for every month, from April to September. The following operating reports were available from the controller: April May June July August September Materials $14,000 $34,800 $33,000 $21,700 $28,800 $33,000 Energy 13,000 28,800 24,200 14,000 Total cost $27,000 $63,600 $57,200 $35,700 Units produced + 50,000 +120,000 + 110,000 + 70,000 17,100 $45,900 +90,000 16,000 $49,000 + 100,000 Cost per unit $0.54 $0.53 $0.52 $0.51 $0.51 $0.49 Differences in materials unit costs were entirely related to the amount of tin content. In addition, inventory changes are negligible and are ignored in the analysis. Calculate the materials cost per unit, energy cost per unit and total cost per unit for each month. Round your answers to the nearest cent. Materials cost per April May June July August September x 28806 v 24.300 wwwww
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