Carter Furniture Manufactures Three Models of Tables: Oak, Cherry, and Walnut

question 127

Essay

Carter Furniture manufactures three models of tables: oak, cherry, and walnut. All models are assembled in the same plant and require the same assembling operations. The difference is in the cost of the wood. The following data are available for July.
$\begin{array}{llr}&\text { Oak } & \text { Cherry}& \text { Walnut } & \text { Total }\\ \text { Number of units } &1,200&700&900&2,800\\ \text { Wood costs per unit } &\$80&\$120&\$105\\ \text { Other costs: } &\\ \text {Direct labor } &&&&\$165,000\\ \text {Indirect materials } &&&&26,000\\ \text { Other overhead } &&&&61,000\\ \text { Total} &&&&\$252,000\\\end{array}$

Carter uses operations costing and assigns conversion costs on the number of tables built.
Required:
Compute the cost of the each of the three models for July.

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Definitions:

Exports and Imports

involve the selling of goods and services to other countries (exports) and buying goods and services from other countries (imports), crucial components of a country's economy.

Frederic Bastiat

Frederic Bastiat was a French economist and writer known for his advocacy of free markets and critique of protectionism, best remembered for his works such as "The Law" and "Economic Sophisms."

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Lower Cost

Refers to a reduction in the expenses incurred in the production of goods or services, improving profitability and competitive advantage.