Question

Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June. $0.53 $0.60 $0.54 None of these choices are correct

Answer 1

The resin materials cost per foot of finished product for June $0.53.

Given the data in the question;

                                                      May                  June                          July

Resin pounds input

into the process                       470,000            700,000              650,000

Price per pound                         X$1.50               X$1.50                    X$1.50

Plastic material costs             $493,000           $640,000             $677,000

Conversion costs                    $80,000           $120,000                 $115,000

Conduit output from

the process (feet)                   800,000              1,200,000            1,130,000

Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June.

Given:

Materials cost for June = $640,000

Number of Feet produced as output in June =  1,200,000

   

So, Formula of Material Cost per foot of finished product

Material Cost per foot of finished product = Material Cost/ Number of feet produced in June

                                                                        = $640,000 / 1,200,000

                                                                        = $0.5333 = $0.53

Therefore, the resin materials cost per foot of finished product for June is $0.53

Hence, the correct option is A.

Your question is incomplete, but most probably your full question was:

Rambo-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit is a tube that encircles and protects the underground cable. In the process of making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. Scrap is produced in this process. Information from the cost of production reports for three months is as follows, assuming that inventory remains constant:

May June July

Resin pounds input into the process 470,000 700000 650,000

Price per pound x81.50 x81.50 x81.50

Plastic material costs 493,000 6,40,000 6,77,000

Conversion costs 80,000 120,000 115000

Conduit output 800,000 1200,000 1130,000

from the process (feet)

Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June.

a. $0.53

b. $0.60

c. $0.54

d. None of these choices are correct.

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