Lindsay Mobility manufactures two versions of e-scooters: L-4 and L-36. Both models go through the same assembly process and are produced in the same plant. The difference between the models is in quality and cost of the parts (direct materials). The following data represent expected operations for the next month:

	L-4	L-36	Total
Number of units	400	150	550
Parts cost per unit	$ 120	$ 280
Conversion costs:
Direct labor			$ 60,500
Overhead			49,500
Total			$ 110,000

Required:

A.Lindsay Mobility uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the L-4 and L-36 models for the upcoming month.

	L-4	L-36	total
Conversion cost
Material cost
total cost
Unit cost

B.After attending a seminar on finance and accounting, the marketing director at Lindsay has asked the controller whether the company should use a two-stage system to calculate the product cost of the two models. The controller agrees to do this and to assign direct labor cost based on the number of units produced and overhead cost based on direct materials cost. Compute the cost per unit of the L-4 and L-36 models for the upcoming month using the controller's design.

	L-4	L-36	total
Conversion cost
direct labor			$
Overhead			$
Material cost			$
total cost			$
unit cost