Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra

image text in transcribedimage text in transcribed

Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two batches of the products are shown below, along with some associated cost information: Work Order 121 Work Order 122 (Regular Strength) (Extra Strength) Direct materials (actual costs): 9,000 15,000 Applied conversion costs: Mixing Tableting Encapsulating Bottling $5,000 $6,000 Batch size (bottles of 100 units) 12,000 18,000 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $60,000 for direct labor and $190,000 for overhead. Budgeted direct labor hours were 5,000. It takes one minute of labor time to mix the ingredients needed for a 100-unit bottle (for either product). In the Bottling Department, conversion costs are applied on the basis of machine hours. Budgeted conversion costs for the department for the year were $400,000. Budgeted machine hours were 20,000. It takes one-half minute of machine time to fill a bottle of 100 units. Required: 1. What are the conversion costs applied in the Mixing Department for each batch? Regular Strength Extra Strength Mixing What are the conversion costs applied in the Bottling Department for each batch? Regular Strength Extra Strength Bottling 2. Calculate the cost per bottle for the regular and extra strength pain medications. If required, round your answers to the nearest cent. Regular Strength Extra Strength Unit cost

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_2

Step: 3

blur-text-image_3

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

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions

Question

Describe the recommendations for holding effective meetings.

Answered: 1 week ago

Question

Define the term utility software and give two examples.

Answered: 1 week ago