Slosh,IncProduces Washing Machines That Require Two Processes,assembling and Finishing,to Complete

question 68

Essay

Slosh,Inc.produces washing machines that require two processes,assembling and finishing,to complete.The company's bestselling machine is the commercial washer.Information related to the 500 commercial washers produced annually is shown below.
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 161,000 \\\hline \text { Direct labor } & \\\hline \text { Assembling Department } ( 1,000 \mathrm { DLH } \times \$ 25 \mathrm { per } & \$ 25,000 \\\text { DLH) } & \\\hline \text { Finishing Department (250 DL.H } \$ 2 2 \mathrm { per } \\\text { DLH) } & \$ 5,500 \\\hline \text { Machine hours } & \\\hline \text { Assembling Department } & 1,500 \mathrm { MH } \\\hline \text { Finishing Department } & 400 \mathrm { MH } \\\hline\end{array}$$
Slosh's total expected overhead costs and related overhead data are shown below.The company uses departmental overhead rates based on direct labor hours in the Assembling Department and machine hours in the Finishing Department.
$$\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Assembling } \\\text { Department }\end{array} & \begin{array} { r } \text { Finishing } \\\text { Department }\end{array} \\\hline \text { Direct labor hours } & 50,000 & 275,000 \mathrm { DLH } \\& \text { DLH } & \\\hline \text { Machine hours } & 37,500 \mathrm { MH } & 8,000 \mathrm { MH } \\\hline \text { Manufacturing overhead costs } & & \$ 60,000 \\& \$ 4,000,000 & \\\hline\end{array}$$
Determine the total product cost of this product line and each individual commercial washer.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the value assigned to a stock for accounting purposes, respectively.

Matures

Refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Par-value

The par value of a bond, share of stock, or coupon as declared by the issuer.

Yield To Maturity

The total return anticipated on a bond if held until it matures, including all interest payments and the repayment of principal.