Question
S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the companys Louisville factory and go through
S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the companys Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available: SL1 SL2 Total Number assembled 1,900 2,400 4,300 Materials cost per tractor $ 1,500 $ 2,000 Other costs: Direct labor $ 1,800,000 Supplies 600,000 Other overhead 3,190,000 Required: S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.
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