IBM is producing three types of servers: Small, Medium, and Large. The following information is available:

• Small Server:
  • Direct Materials: $40,000,000
  • Direct Labor: $25,000,000
  • Overhead Rate: 125%
• Medium Server:
  • Direct Materials: $60,000,000
  • Direct Labor: $35,000,000
  • Overhead Rate: 120%
• Large Server:
  • Direct Materials: $80,000,000
  • Direct Labor: $50,000,000
  • Overhead Rate: 115%

Requirements:

1. Calculate the total cost for each type of server.
2. Compute the total manufacturing overhead applied to each job.
3. Prepare a Job Cost Sheet for each server.
4. Determine the cost per unit if IBM produces 1,000 units of each server type.
5. Prepare an Income Statement reflecting these job costs.