LO.6 (Multiproduct; hybrid costing) Be-at-Ease Industries manufactures a series ofthree models of molded plastic chairs: standard (without arms), deluxe (with arms), andexecutive (with arms and padding). All are variations of the same design. The companyuses batch manufacturing and has a hybrid costing system.Be-at-Ease has an extrusion operation and subsequent operations to form, trim, andfinish the chairs. Plastic sheets are produced by the extrusion operation, some of whichare sold directly to other manufacturers. During the forming operation, the remainingplastic sheets are molded into chair seats and the legs are added; the standard model issold after this operation. During the trim operation, the arms are added to the deluxeand executive models, and the chair edges are smoothed. Only the executive modelenters the finish operation where the padding is added. All units produced completethe same steps within each operation. The July production run had a total manufacturing cost of $898,000. The units ofproduction and direct material costs incurred were as follows:Plastic sheetsStandard modelDeluxe modelExecutive modelTotalsUnitsProducedDirect laborFactory overhead$ 60,00072,000$24,00036,00012,00024,0008,000$192,000$44,000Manufacturing costs applied during July were as follows:FormOperation5,0006,0003,0002,00016,000ExtrusionOperationExtrusionMaterials$152,000240,000FormMaterials$60,00072,000TrimMaterials$ 9,0006,000$15,000TrimOperation$30,00039,000a. For each product produced by Be-at-Ease during July, determine the1. Unit cost.FinishMaterials$12,000$12,000FinishOperation$18,00024,0002. Total cost.Account for all costs incurred during the month, and support your answer withappropriate calculations.b. Without prejudice to your answer in part (a), assume that only 1,000 units ofthe deluxe model remained in the Work in Process Inventory at the end of themonth. These units were 100 percent complete as to material and 60 percentcomplete as to conversion in the trim operation. Determine the value of the1,000 units of the deluxe model in Be-at-Ease's Work in Process Inventory atthe end of July.

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a. For each product produced by Be-at-Ease during July, determine the 1. Unit cost. 2. Total cost. Account for all costs incurred during the month, and support your answer with appropriate calculations. b. Without prejudice to your answer in part (a), assume that only 1,000 units of the deluxe model remained in the Work in Process Inventory at the end of the month. These units were 100 percent complete as to material and 60 percent complete as to conversion in the trim operation. Determine the value of the 1,000 units of the deluxe model in Be-at-Ease's Work in Process Inventory at the end of July.

a. For each product produced by Be-at-Ease during July, determine the 1. Unit cost. 2. Total cost. Account for all costs incurred during the month, and support your answer with appropriate calculations. b. Without prejudice to your answer in part (a), assume that only 1,000 units of the deluxe model remained in the Work in Process Inventory at the end of the month. These units were 100 percent complete as to material and 60 percent complete as to conversion in the trim operation. Determine the value of the 1,000 units of the deluxe model in Be-at-Ease's Work in Process Inventory at the end of July.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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