207. Question ID: CMA 691 3.48a (Topic: Job-Order, Operation, and Life-Cycle Costing) Gregg Industries manufactures molded...

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207. Question ID: CMA 691 3.48a (Topic: Job-Order, Operation, and Life-Cycle Costing) Gregg Industries manufactures molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation costing system. Gregg has an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the standard model is sold after this operation. During the trim operation, the arms are added to the deluxe and executive models and the chair edges are smoothed. Only the executive model enters the finish operation where the padding is added. All of the units produced are subject to the same steps within each operation. The units of production and direct materials costs were as follows: Units Produced Extrusion Form Trim Finish Materials Materials Materials Materials Plastic sheets 5,000 $ 60,000 Standard model 6,000 72,000 $24,000 Deluxe model 3,000 36,000 12,000 $ 9,000 Executive model 2,000 24,000 8,000 6,000 $12,000 https://t.me/CMA_part1 https://t.me/CMA part2 201 Hock 2020 Part 1 Section D Cost Management. Answers 16,000 $192,000 $44,000 $15,000 $12,000 Manufacturing costs applied during the month were: Direct labor Factory overhead Form Trim Finish Extrusion Operation Operation Operation Operation $152,000 $60,000 $30,000 $18,000 240,000 72,000 39,000 24,000 No units are in process at the end of the period. The unit cost of a standard model is A. $96.30 B. $36.50 C. $52.50correct D. $69.30 207. Question ID: CMA 691 3.48a (Topic: Job-Order, Operation, and Life-Cycle Costing) Gregg Industries manufactures molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation costing system. Gregg has an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the standard model is sold after this operation. During the trim operation, the arms are added to the deluxe and executive models and the chair edges are smoothed. Only the executive model enters the finish operation where the padding is added. All of the units produced are subject to the same steps within each operation. The units of production and direct materials costs were as follows: Units Produced Extrusion Form Trim Finish Materials Materials Materials Materials Plastic sheets 5,000 $ 60,000 Standard model 6,000 72,000 $24,000 Deluxe model 3,000 36,000 12,000 $ 9,000 Executive model 2,000 24,000 8,000 6,000 $12,000 https://t.me/CMA_part1 https://t.me/CMA part2 201 Hock 2020 Part 1 Section D Cost Management. Answers 16,000 $192,000 $44,000 $15,000 $12,000 Manufacturing costs applied during the month were: Direct labor Factory overhead Form Trim Finish Extrusion Operation Operation Operation Operation $152,000 $60,000 $30,000 $18,000 240,000 72,000 39,000 24,000 No units are in process at the end of the period. The unit cost of a standard model is A. $96.30 B. $36.50 C. $52.50correct D. $69.30