Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

تمرين 4

VALUE-STREAM COSTING
During the week of June 12, Leonard Manufacturing produced and shipped 7,500 units of its aluminum wheels: 1,500 units of Model A and 6,000 units of Model B. The following costs were incurred:

Required:
1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy.
2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation.
3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.