Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and

Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods.

Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department.

Total Gag-Gift (6,400 units) Commuter (11,400 units) Sport (15,800 units) Retirement (3,400 units)
Materials $ 435,000 $ 16,000 $ 114,000 $ 237,000 $ 68,000
Conversion costs:
Assembly $ 222,000
Polishing 136,000
Special Finishing 40,800
Packaging 185,000
Total conversion costs $ 583,800

Required:

b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.)

Cost Per Unit
Gag-Gift
Commuter
Sport
Retirement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Entrepreneurial Finance

Authors: Marco Da Rin, Thomas Hellmann

8th Edition

0199744750, 9780199744756

More Books

Students also viewed these Accounting questions

Question

Recognize the various roles and competencies of an HRD professional

Answered: 1 week ago

Question

Define human resource development (HRD)

Answered: 1 week ago