Question: Friedman Company uses JIT manufacturing There are several manufacturing cells

Friedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisions. The cost of production for the month of April is given below.
Cell labor ....... $ 60,000
Direct materials ........ 150,000
Overhead ........ 120,000
Total .......... $330,000
During May, 30,000 stands were produced and sold.
Required:
1. Explain why process costing can be used for computing the cost of production for the stands.
2. Calculate the cost per unit for a stand.
3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.


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  • CreatedSeptember 01, 2015
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