Your skateboard manufacturing operation is broken up into two separate production areas. The first, where the decks are made, is set up as a process cost environment -- all decks go through the same lamination process in their manufacture and are given the same sealant coating. After that, the decks are cut to three different sizes for the three different models of skateboards that are sold. Then, different wheels, bearings, trucks, and other components are added in the assembly area to create the finished skateboard. It was decided that job-order costing would be used to track this completion part of production. For the manufacturing of the decks, the following information has been collected for you: Production Data (in units): Beginning Work in Process Units started into production Units Completed & Transferred 39,500 120,500 135,000 Cost Data: Beginning WIP -- Materials Beginning WIP -- Labor Beginning WIP -- Overhead 227,129 1,343,107 2,014,628 Cost Added During the Period: Materials Labor Overhead Total Cost Added 722,771 5,699,243 8,550,322 14,972,336 Required: Part 1 Using the above transactions and the additional production information, prepare the production report / process cost summary on page 2. Use the format I used in class that breaks out DM, DL and OH. Assume ending WIP is 50% complete with respect to DM and and 30% complete with respect to DL & OH. (30 points) Part 2 Using the costs you computed for the decks, and information given on page 3, you will need to figure out the costs per unit for the three models of skateboard produced. (20 points) Name ACCT 202 Project 1, Part 2 The costs for the Assembly Area are collected separately and estimates for next year are provided in the table below. Overhead is applied using Direct Labor Hours as the allocation base. $ $ Indirect Material - Assembly Direct Labor Hours Assembly Labor - Indirect Factory Supervision - Assembly Direct Materials Depreciation - Assembly Equip Repairs & Maintenance - Assembly Assembly Labor - Direct Factory Utilities - Assembly Area Factory Insurance - Assembly Area 145,960 91,830 76,210 168,490 483,570 94,550 29,180 1,974,710 985,290 61,430 $ $ $ $ $ What would be the predetermined overhead rate? (please round to the nearest two decimal places) Using the information in the table below, plus costs computed on page 2, please determine the manufacturing cost per unit for each of the three models. Be sure to show your work and identify all cost elements (DM, DL and OH) on page 4. Please round answers to the nearest two decimal places / nearest cent. Model Number of Units Completed Direct Labor Hours Direct Labor Dollars Direct Material Dollars Men's 32" 26,249 37,760.00 $ 804,150.00 $ 128,890.00 Kids 24" 21,067 23,520.00 $ 489,810.00 $ 163,700.00 Ladies 27" 15,456 30,550.00 $ 680,750.00 $ 190,980.00
