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Glass Glow Company manufactures a variety of glass windows in its Egalton plant. In department I, clear glass sheets are produced, and some of these

Glass Glow Company manufactures a variety of glass windows in its Egalton plant. In department I, clear glass sheets are produced, and some of these sheets are sold as finished goods. Other sheets made in department I have metallic oxides added in department II to form colored glass sheets. Some of these colored sheets are sold; others are moved to department III for etching and then are sold. The company uses operation costing.

Glass Glow Companys production costs applied to products in May are given in the following table. There was no beginning or ending inventory of work in process for May.

Cost Category Dept. I Dept. II Dept. III
Direct material $ 450,000 $ 72,000 0
Direct labor 38,000 22,000 $ 38,000
Manufacturing overhead 230,000 68,000 73,750

Products Units Dept. I Dir. Mat. Dept. II Dir. Mat.
Clear glass, sold after dept. I 11,000 $ 247,500 0
Unetched colored glass, sold after dept. II 4,000 90,000 $ 32,000
Etched colored glass, sold after dept. III 5,000 112,500 40,000

Each sheet of glass requires the same steps within each operation.

4. Compute the cost of an unetched colored glass sheet

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