Tyler Corporation Uses JIT Manufacturing During July,Tyler Corporation Produced and Sold 500 Batteries

question 70

Essay

Tyler Corporation uses JIT manufacturing.There are several manufacturing cells set up within one of its factories.One of the cells makes batteries.The cost of production for the month of July is as follows:
$\begin{array}{lr}\text { Cell labour } & \$ 10,000 \\\text { Direct materials } & 25,000 \\\text { Overhead } & 20,000 \\\text { Total } & \$ 55,000\end{array}$ During July,Tyler Corporation produced and sold 500 batteries.
a.Why can process costing be used to compute the cost of the batteries?
b.Calculate the unit cost of a battery.

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Definitions:

Charges

Fees or financial obligations that are required to be paid as part of a transaction or legal process.

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without just compensation.

Public Use

The utilization of land or property by the general public or for a public purpose, often justified for projects involving eminent domain.

Just Compensation

The fair market value that must be paid for property taken by the government through eminent domain.