General Motors is producing three models: Silverado, Malibu, and Equinox. The following information is provided:

• Silverado:
  • Direct Materials: $90,000,000
  • Direct Labor: $60,000,000
  • Overhead Rate: 130%
• Malibu:
  • Direct Materials: $70,000,000
  • Direct Labor: $40,000,000
  • Overhead Rate: 140%
• Equinox:
  • Direct Materials: $50,000,000
  • Direct Labor: $30,000,000
  • Overhead Rate: 120%

Requirements:

1. Compute the total cost for each model.
2. Calculate the total manufacturing overhead applied to each job.
3. Prepare a Job Cost Sheet for each model.
4. Determine the cost per unit if GM produces 2,000 units of Silverado, 3,000 units of Malibu, and 4,000 units of Equinox.
5. Prepare an Income Statement assuming all units are sold at $150,000 for Silverado, $100,000 for Malibu, and $80,000 for Equinox.