Ch6-33 - P6-33 a. Note: There is no standard format for...

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Unformatted text preview: P6-33 a. Note: There is no standard format for this solution. Cost of raw materials: D34 purchase price (20,000 × $5.50) $110,000 Purch. order & receiving report (4 × $20) 80 Unpack & inspect (20,000 × $0.50) 10,000 Carrying ($110,000 × 0.01) 1,100 G77 purchase price (30,000 × $0.55) $ 16,500 Purch. order & receiving report (3 × $20) 60 Unpack & inspect (30,000 × $0.50) 15,000 Carrying ($16,500 × 0.01) 165 H65 purchase price (10,000 × $20) $200,000 Purch. order & receiving report (10 × $20) 200 Unpack & inspect (10,000 × $0.50) 5,000 Carrying ($200,000 × 0.01) 2,000 Cost to issue raw materials (10 jobs per year × 3 materials × $14) Movement costs: Move to machine A (10,000 × $1.50) Move to machine B (10,000 × $1.50) Move to machine C (10,000 × $1.50) Move to assembly (10,000 × $1.50) Move to inspection (10,000 × 2 insps. × $1.50) Move to finished goods (10,000 × $1.50) Setup costs: Machine A (10 batches × $50) Machine B (10 batches × $60) Machine C (10 batches × $55) Machine/labor activities: Machine A (10 batches × 100 × $40) Machine B (10 batches × 50 × $42) Machine C (10 batches × 50 × $30) Labor (10 batches × 60 × $25) Inspection activities (10,000 units × 2 insps. × $0.50) In-process carrying costs (10,000 × 3 days × $0.50) Total annual cost of product G57 Annual production in units Average unit cost $121,180 31,725 207,200 $360,105 420 $ 15,000 15,000 15,000 15,000 30,000 15,000 $ 500 600 550 105,000 1,650 $ 40,000 21,000 15,000 15,000 $ 10,000 15,000 91,000 25,000 $583,175 ÷ 10,000 $ 58.32 ...
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