The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The cost of production for the month of December is as follows:
During December, Tolstoy Corporation produced and sold 500 welders.
Required:
a. Why can process costing be used to compute the cost of the welders?
b. Calculate the unit cost of a welder..

Question

The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The cost of production for the month of December is as follows:
  During December, Tolstoy Corporation produced and sold 500 welders.
Required: 
a. Why can process costing be used to compute the cost of the welders?
b. Calculate the unit cost of a welder..

Quizplus · Accepted Answer

The Answer of The Tolstoy Corporation uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes welders. The cost of production for the month of December is as follows:
  During December, Tolstoy Corporation produced and sold 500 welders.
Required: 
a. Why can process costing be used to compute the cost of the welders?
b. Calculate the unit cost of a welder..

The Tolstoy Corporation Uses JIT Manufacturing