Question - S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company's Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available:
|
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SL1
|
SL2
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Total
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Number assembled
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1,450
|
1,950
|
3,400
|
|
Materials cost per tractor
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$1,900
|
$2,400
|
|
|
Other costs:
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|
|
|
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Direct labor
|
|
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$2,200,000
|
|
Supplies
|
|
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680,000
|
|
Other overhead
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|
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3,580,000
|
Required: S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.