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Darya [45]
3 years ago
9

Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium pro

duct sold in upscale outdoor shops; the Smoker is sold in major discount stores. Following is information pertaining to the manufacturing costs for the current month:
Gas Cooker Charcoal SmokerUnits 1,000 3,000Number of batches 20 10Number of batch moves 80 20Direct materials $30,000 $100,000Direct labor $20,000 $29,000Manufacturing overhead follows:Activity Cost Cost DriverMaterials acquisition and inspection $299,000 Amount of direct materials costMaterials movement 16,600 Number of batch movesScheduling 18,000Number of batches $333,600Rounding instructions: Do not round until your final answers. Round total cost answers to the nearest dollar and per unit answers to the nearest cent.(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars.
Business
1 answer:
kenny6666 [7]3 years ago
8 0
Wowie. soup is nice right yes it is
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Search... Unlock all answers JOIN FOR FREE jswagballerlife4060 01/08/2020 Business College answered LO 5.3Direct material costs
Tomtit [17]

Answer:

$130,000

Explanation:

Calculation to determine the value of the inventory transferred to the next department

First step is to calculate the Cost per unit

Using this formula

Cost per unit = Direct material costs + Direct labor costs + Overhead

Let plug in the formula

Cost per unit=$3+$5+(100%*$5)

Cost per unit = $3 + $5 + $5

Cost per unit = $13

Second step is to calculate the inventory transferred using this formula

Inventory transferred = Beginning inventory + Started Inventory - Ending inventory .

Let plug in the formula

Inventory transferred = 2,000 + 9,000 - 1,000

Inventory transferred = 10,000 units

Now let calculate the value of the inventory transferred

Using this formula

Value of inventory transferred = Inventory transferred × Cost per unit

Let plug in the formula

Value of inventory transferred = 10000 × $13

Value of inventory transferred = $130,000

Therefore the value of the inventory transferred to the next department is $130,000

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