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Exercise 6-49 (Algo) Operations Costing (LO 6-6) Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in
Exercise 6-49 (Algo) Operations Costing (LO 6-6) Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August: Number of units assembled Materials cost per unit Fatboy 960 $ 2,800 Screamer 1,920 $ 3,800 Total 2,880 Other costs: Direct labor Indirect materials Other overhead $2,764,800 460,800 1,382,400 Required: Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August. Operation cost Materials cost Total cost Number of units Unit cost Fatboy Screamer Total $ 0 2,688,000 7,296,000
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