Value-Stream Costing Objective

During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 4,600 units of Model A and 12,000 units of Model B. The following costs were incurred:

	Materials		Salaries/ Wages		Machining		Other		Total Cost
Order processing			$19,400						$19,400
Production planning			69,600						69,600
Purchasing			24,300						24,300
Stamping	$370,000		37,000		$36,800		$18,400		462,200
Welding	140,000		41,000		41,000		12,000		234,000
Cladding	215,000								215,000
Testing			10,500						10,500
Packaging and shipping			10,000						10,000
Invoicing			12,200						12,200
Total	$725,000		$224,000		$77,800		$30,400		$1,057,200

Required:

1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. Round your answer to the nearest dollar amount. $ per unit

2. Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount.

	Unit Cost
Model A	$
Model B	$

3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B. Round your answers to the nearest dollar amount.

	Unit Cost
Model A	$
Model B	$

Calculate the total unit cost for Models A and B. Round your interim calculations and final answers to the nearest dollar amount.

	Unit Cost
Model A	$
Model B	$

Value-Stream Costing Objective During the week of June 12, Harrison Manufacturing produced and shipped 16,600 units of its aluminum wheels: 4,600 units of Model A and 12,000 units of Model B. The following costs were incurred: Salaries/ Wages Materials Machining Other Total Cost Order processing Production planning Purchasing Stamping $19,400 69,600 24,300 $19,400 69,600 24,300 462,200 37,000 $370,000 140,000 215,000 $36,800 41,000 $18,400 12,000 Welding 41,000 234,000 215,000 Cladding Testing Packaging and shipping Invoicing Total 10,500 10,000 12,200 10,500 10,000 12,200 $1,057,200 $725,000 $224,000 $77,800 $30,400 Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. Round your answer to the nearest dollar amount. $ per unit 2. Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Unit Cost Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost. Round your answer to the nearest dollar amount. $ per unit 2. Calculate the unit cost for Models A and B. Round your answers to the nearest dollar amount. Unit Cost Model A Model B 3. What if Model A is responsible for 40 percent of the materials cost? Calculate the unit materials cost for Models A and B. Round your answers to the nearest dollar amount. Unit Cost Model A Model B Calculate the total unit cost for Models A and B. Round your interim calculations and final answers to the nearest dollar amount. Unit Cost Model A $ modela Model B