The Carter Furniture Company needs to determine the cost of two work orders for December 2017. Work Order 1200A is for 250 painted, unassembled chests and Work Order 1250A is for 400 stained, assembled chests. The following information pertains to these two work orders:

Selected budget information for December follows:
Unassembled Chests Assembled Chests Total
Chests..................................800.................................1,500..............2,300
Direct materials costs...........$52,000.............................$180,000.........$232,000
Budgeted conversion costs for each operation for December follow:
Cutting..............................$41,400
Painting.................................6,400
Staining...............................24,000
Assembling...........................33,000
Packaging............................11,500
Required:
1. Using budgeted number of chests as the denominator, calculate the budgeted conversion-cost rates for each operation.
2. Using the information in requirement 1, calculate the budgeted cost of goods manufactured for the two December work orders.
3. Calculate the cost per unassembled chest and assembled chest for Work Order 1200A and Work Order 1250A, respectively.

Transcribed Image Text:

Work Order 1200A Work Order 1250A 250 400 Number of chests Operations 1. Cutting 2. Painting 3. Staining 4. Assembling 6. Packaging Use Use Do not use Do not use Use Use Do not use Use Use Use