Two styles of men's shoes are manufactured by the Comfort Fit Shoe Company: designer and regular. Designer
Question:
Two styles of men's shoes are manufactured by the Comfort Fit Shoe Company: designer and regular. Designer style is made from leather, and regular style uses synthetic materials. Three operations-cutting, sewing, and packing-are common to both styles, but only designer style passes through a lining operation. The conversion cost rates for 2015 are:
Details of two work orders processed in August are:
Work Order 815Work Order 831
Style ......................................... Designer ..................... Regular
Number of units (pairs) ...................... 1,000 ......................... 5,000
Direct materials costs ..................... $30,000 ...................... $50,000
Required
Calculate the total costs and the total cost per unit of work order 815 and work order 831.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham