Tyler Corporation uses JIT manufacturing.There are several manufacturing cells set up within one of its factories.One of the cells makes batteries.The cost of production for the month of July is as follows:
$\begin{array}{lr}
\text { Cell labour } & \$ 10,000 \
\text { Direct materials } & 25,000 \
\text { Overhead } & 20,000 \
\text { Total } & \$ 55,000
\end{array}$ During July,Tyler Corporation produced and sold 500 batteries.
a.Why can process costing be used to compute the cost of the batteries?
b.Calculate the unit cost of a battery.

Question

Tyler Corporation uses JIT manufacturing.There are several manufacturing cells set up within one of its factories.One of the cells makes batteries.The cost of production for the month of July is as follows:
 $\begin{array}{lr}
\text { Cell labour } & \$ 10,000 \
\text { Direct materials } & 25,000 \
\text { Overhead } & 20,000 \
\text { Total } & \$ 55,000
\end{array}$ During July,Tyler Corporation produced and sold 500 batteries. 
a.Why can process costing be used to compute the cost of the batteries?
b.Calculate the unit cost of a battery.

Quizplus · Accepted Answer

The Answer of Tyler Corporation uses JIT manufacturing.There are several manufacturing cells set up within one of its factories.One of the cells makes batteries.The cost of production for the month of July is as follows:
 $\begin{array}{lr}
\text { Cell labour } & \$ 10,000 \
\text { Direct materials } & 25,000 \
\text { Overhead } & 20,000 \
\text { Total } & \$ 55,000
\end{array}$ During July,Tyler Corporation produced and sold 500 batteries. 
a.Why can process costing be used to compute the cost of the batteries?
b.Calculate the unit cost of a battery.

Tyler Corporation Uses JIT Manufacturing During July,Tyler Corporation Produced and Sold 500 Batteries