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 1,850 2,350 4,200
Materials cost per tractor $ 1,450 $ 1,950
Other costs:
Direct labor $ 1,750,000
Supplies 590,000
Other overhead 3,960,000
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.
of each model assembled in November.
SL1 | SL2 | Total | |
Operation Cost | |||
Materials Cost | |||
Total Cost | |||
Number of Units | |||
Unit Cost |
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