S. Lee Enterprises produces two models quality (hence, cost) of the parts used.

Question

S. Lee Enterprises produces two models quality (hence, cost) of the parts used. The following data are available for November, the latest month for of lawn tractor: SL 1 and SL The models are both produced in the company's Louisvile factory and go through identical assembly operations The dfference is in the which information is available: 1,350 1,850 s 950 1,450 Number assembied Materials cost per tractor Other costs Direct labor Supplies Other overhead $1.250,000 1460,000 Required S Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each modet Materials cost Total cos Number of unts

Explanation / Answer

Total operation cost :1250000+490000+1460000=3200000

SL 1 SL 2 Total operation cost [3200000/3200]= $ 1000 per unit assembled 1350*1000= 1350000 1850*1000=1850000 material cost 950*1350= 1282500 1450*1850= 2682500 Total cost [A] 2632500 4532500 Number of unit [B] 1350 1850 Unit cost [A/B] 1950 2450

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