Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, a

Question

Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department ement Total 455,000 (16,200(3,600 units) 33,000 116,000 $243,000 $ 63,000 (6,600 units) (11,600 units) units) Materials Conversion costs Polishing Special Finishing 114,000 55,600 32,400 76,000 Packaging Total conversion costs $ 278,000 Required: What is the cost per unit tranisferred to finished goods inventory for each of the four watches in October? Round "cost per unit" to 2 decimal places.) Cost Per Unit Gag-Gift ommuter Sport Retirement O Type here to search

Explanation / Answer

Units Gag-gift 6600 Commuter 11600 Sport 16200 Retirement 3600 Total units 38000 Total conversion cost 278000 Total units 38000 Conversion cost per unit 7.32 Gag-gift Commuter Sport Retirement Material cost 33000 116000 243000 63000 Units 6600 11600 16200 3600 Material cost per unit 5 10 15 17.5 Conversion cost per unit 7.32 7.32 7.32 7.32 Cost per unit 12.32 17.32 22.32 24.82

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.