Question
PREPARE THE SCHEDULE OF COGS and COST OF ENDING FINISHED GOODS with the help of this information. The template is provided below just put the
PREPARE THE SCHEDULE OF COGS and COST OF ENDING FINISHED GOODS with the help of this information. The template is provided below just put the right numbers in it to get the right answer. TEMPLATE:
CHECK FIGURE(To check the answer is right or not): Cost per unit provided= $167.73
Product Information: The company's manufacturing function consists of three departments: cutting, assembly, and finishing. Each device requires the following direct material: 4 units of Material X @ $11.00 per unit 2 units of Material Y @ $16.00 per unit XY pays shipping costs for Material X of $1.00 per unit. Material Y is shipped at no charge. All material purchased are paid for within the same quarter they are purchased The cutting and assembly departments employs hourly workers who complete the required direct labour. Each department has the following configuration: # of production machines # workers at each machine Maximum workers employed per shift Hours per shift (8 hours/day x 22 days/month x 3 months/quarter) Maximum units made per hour 30 5 150 528 1.8 Workers in each department are paid $8 per hour for the first shift. XY is able to run a second shift if needed. Workers on the 2nd shift are paid the normal hourly wage PLUS a 20% shift premium. No new materials are added in the finishing department. All labour in the finishing department is considered indirect. XY completes all production each day (there is no WIP inventory). Material X can sometimes be difficult to get on a timely basis. There has never been any difficulties getting as much Material Y as needed, very quickly. Sales have been increasing each quarter. XY hopes to increase their ending materials inventory at December 31 to: Material X Material Y 153,000 5,000 units units Beginning inventory consists of 148,096 units of Material X. There was no Material Y inventory on hand at the beginning of the quarter. There were 2,000 units of Finished Goods on hand at the beginning of the quarter. XY plans to have the same number of Finished Goods on hand at the end of the quarter.
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