Adolphus Instruments Manufactures Two Models of Calculators Adolphus Uses Operations Costing and Assigns Conversion Costs on the Is

question 111

Essay

Adolphus Instruments manufactures two models of calculators. The research model is the RES-1 and the student model is the AS-2. Both models are assembled in the same plant and require the same assembling operations. The difference is in the cost of the internal components. The following data are available for February.
$\begin{array}{llr}& \text { RES-1}& \text { AS-2}& \text { Total}\\ \text { Number of units } &20,000&80,000&100,000\\ \text { Parts cost per unit } &\$40&\$50\\ \text { Other costs: } &&\\ \text { Direct labor } &&&\$124,000\\ \text { Indirect materials} &&&35,000\\ \text { Other overhead } &&&141,000\\ \text { Total} &&&\$300,000\\\end{array}$

Adolphus uses operations costing and assigns conversion costs on the number of units assembled.
Required:
Compute the cost of the RES-1 and AS-2 models for February.

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