Question
Your Skateboard manufacturing operation is broken up into two seperate production areas. The first where the decks are made, is set up as a process
Your Skateboard manufacturing operation is broken up into two seperate production areas. The first where the decks are made, is set up as a process cost enviorment- all decks go through the same lamination process in their manufacture and are given the same sealant coating. After that, the decks are cut into 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 collection for you:
Production Data: (in units)
Beginning Work in process: 39,500
Units Started into production: 120,500
Units Completed & transferred: 135,000
Cost Data
Beginning WIP-- Materials: 227,129
Beginning WIP-- Labor 1,343,107
Beginning WIP-- Overhead 2,014,628
Cost Added During the period:
Materials : 722,771
Labor: 5,699,243
Overhead: 8,550,322
Total Cost Added: 14,972,336
Required:
Part 1
Using the above transactions and the additonal 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 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. (20points)
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