Slater Corporation has a value stream that produces two products, Model 100 and Model 200. Last week,
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Question:
Slater Corporation has a value stream that produces two products, Model 100 and Model 200. Last week, the value stream costs were as follows: Materials $ 60,000 (60% is Model 100 and 40% is Model 200.
Salaries & Wages 30,000
Machining 25,000
Other Costs 11,000
Total $126,000
The company produced and shipped 3,000 units of Model 100 and 6,000 units of Model 200.
Total production hours for the week were 5,400. Model 100 has a cycle time of 1.05 hours and Model 200 has a cycle time of 0.37 hours.
Calculate the unit cost for each model, using the average conversion cost method Calculate the unit cost for each.
Expert Answer:
The unit cost for each model is as follows Model 100 1260003000 42 per unit Model 200 1260006000 2... View the full answer
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