DiDonato Supplies manufactures two versions of presentation remotes: Basic and Laser. Both models...
Question:
DiDonato Supplies manufactures two versions of presentation remotes: Basic and Laser. Both models go through the same assembly process and are produced in the same plant. The difference between the models is in additional parts for the laser model as well as the cost of the parts themselves. The following data are available for the year just ended:
| Basic | Laser | Total | |
| Number of units | 290,000 | 80,000 | 370,000 |
| Parts cost per unit | $10 | $20 | |
| Other costs: | |||
| Direct labor | $792,000 | ||
| Indirect materials | $177,500 | ||
| Overhead | $880,500 | ||
| Total | $1,850,000 |
Required:
DiDonato uses operations costing and assign conversion costs based on the number of units assembled. Compute the cost per unit of the Basic and Laser models for the year just ended.
Operations Costing
Operations costing is a hybrid between job order costing and process costing. Operations costing is similar to job order costing in the sense that each job or product has its own set of direct materials. Additionally, it is similar to process costing in the sense that the different jobs undergo the same conversion process.
Answer and Explanation: 1
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View this answerIn operations costing, each product has its own direct materials cost, but share in the conversion costs (direct labor and overhead). The conversion...
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