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The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The
The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The cost of production for the month of December is as follows:
| Cell labor | $10,000 |
| Direct materials | 25,000 |
| Overhead | 20,000 |
| Total | $55,000 |
During December, Tolstoy Corporation produced and sold 500 welders. Required:
| a. | Why can process costing be used to compute the cost of the welders? |
| b. | Calculate the unit cost of a welder.. |
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