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Operation costing. The Carter Furniture Company needs to determine the cost of two work orders for December 2017. Work Order 1200A is for 250 painted,
Operation costing. The Carter Furniture Company needs to determine the cost of two work orders for December 2017. Work Order 1200A is for 250 painted, unassembled chests and Work Order 1250A is for 400 stained, assembled chests. The following information pertains to these two work orders:
18-28. OPERATION COSTING. The Carter Furniture Company needs to determine the cost of two work orders for December 2020. Work Order 1200A is for 250 painted, unassembled chests and Work Order 1250A is for 400 stained, assembled chests. The following information pertains to these two work orders: Work Order 1200A Work Order 1250A Number of chests 250 400 Operations 1. Cutting Use Use 2. Painting Use Do not use 3. Staining Do not use Use 4. Assembling Do not use Use 5. Packaging Use Use Selected budget information for December follows: Chests Direct materials costs Unassembled Chests 800 $52,000 Assembled Chests 1,500 $180,000 Total 2,300 $232,000 Budgeted conversion costs for each operation for December follow: Cutting $41,400 Painting 6,400 Staining 24,000 Assembling 33,000 Packaging 11,500 Required 1. Using budgeted number of chests as the denominator, calculate the budgeted conversion-cost rates for each operation. 2. Using information in requirement 1, calculate the budgeted cost of goods manufactured for the two December work orders. 3. Calculate the cost per unassembled chest and assembled chest for Work Order 1200A and Work Order 1250A, respectivelyStep by Step Solution
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