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Kumalae Products Makes Four Models of Ukuleles

Question 88

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Kumalae Products makes four models of ukuleles.All of the models go through the same assembly line but they differ as to the materials used and the degree of finishing.The Basic model has a low gloss finish and goes immediately to Packaging upon completion in Assembly.The Swietenia model and the Acacia model go through a Buffing process upon completion in Assembly.They then go on to Packaging.The Koa model is the top of the line and goes first to Buffing from the Assembly,then to Special Polishing,then to Packaging.
Kumalae uses operations costing and allocates conversion costs based on the number of units processed in each department.
Required:
(a)What is the cost per unit of each of the completed ukuleles?
Kumalae Products makes four models of ukuleles.All of the models go through the same assembly line but they differ as to the materials used and the degree of finishing.The Basic model has a low gloss finish and goes immediately to Packaging upon completion in Assembly.The Swietenia model and the Acacia model go through a Buffing process upon completion in Assembly.They then go on to Packaging.The Koa model is the top of the line and goes first to Buffing from the Assembly,then to Special Polishing,then to Packaging. Kumalae uses operations costing and allocates conversion costs based on the number of units processed in each department. Required: (a)What is the cost per unit of each of the completed ukuleles?

Correct Answer:

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Basic: $75/unit; Swi...

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