Superior Washing Inc. produces dishwashers. Two Processing departments are involved in the manufacture. The tub department and the motor department; there is no Beginning or ending work in process inventory in either department. During April, the company incurred the following costs in the manufacture of 4,000 dishwashers:
Tub Dept. Motor Dept.
Direct Materials.................................$190,000 $90,000
Direct Labor........................................$12,000 $18,000
Overhead............................................$18,000 $6,000
Instructions:
A) Compute the per unit cost for the month of April for the Tub department.
B) Compute the per unit cost for the month of April for the Motor department.
C) What is the Total Cost of a completed dishwasher
D) Sell 1,000 of the dishwashers at a price you select, what is the Net Income if Selling Expenses are $100.
Tub |
Motor |
||
A |
Direct material |
$190,000 |
$90,000 |
B |
Direct labor |
$12,000 |
$18,000 |
C |
Overhead |
$18,000 |
$6,000 |
D = A+B+C |
Total Cost |
$220,000 |
$114,000 |
E |
Total units |
4,000 |
4,000 |
F = D/E |
Unit Cost |
$55.00 |
$28.50 |
[requirement (A)] |
[requirement (B)] |
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