Question

Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: Molding Grinding Finishing Department Department Department Direct materials $143,700 $14,400 $9,500 Direct labor 13,900 33,300 23,100 Applied overhead 18,300 136,400 18,500 During September, 9,200 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost. (Round the unit cost to two decimal places.)

Answer 1

Answer

the unit cost of each product is

Explanation:

                          Moulding   Grinding   Finishing

Direct Material           143,700               14,400              9,500

Direct Labour              13,900                33,300             23,100

Applied Overhead      18,300               136,400            18,500

                                  ________________________________

Total cost                     175,900           184,100               51,100

Transferred in cost                              175,900              

Total Manufacturing   ________________________________

 Cost                           175,900         360,000                411,100

                                     ________________________________

unit cost = 51100 ÷ 9200 = 5.55