Compute the cost of each model assembled in august

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Reference no: EM13515629

Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is the cost of materials. The following data are available for August.

 

Fatboy

Screamer

Total

Number of units assembled

2,000

4,000

6,000

Materials cost per unit

$2,000

$3,000

 

Other costs:

 

 

 

Direct labor

 

 

$6,000,000

Indirect materials

 

 

1,800,000

Other overhead

 

 

4,200,000

Required

Howrley-David uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in August.

Reference no: EM13515629

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