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Category > Accounting Posted 19 Aug 2017 My Price 11.00

Alvarez Manufacturing Inc

Decision making with job order costs


Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows:

 

 

 

Date

Job no.

Product

Quantity

Amount

Jan. 2

1

TT

520

$16,120

Jan. 15

22

SS

1,610

20,125

Feb. 3

30

SS

1,420

25,560

Mar. 7

41

TT

670

15,075

Mar. 24

49

SLK

2,210

22,100

May 19

58

SLK

2,550

31,875

June 12

65

TT

620

10,540

Aug. 18

78

SLK

3,110

48,205

Sept. 2

82

SS

1,210

16,940

Nov. 14

92

TT

750

8,250

Dec. 12

98

SLK

2,700

52,650

 

 

 

a.    Develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Use this information to determine Alvarez Manufacturing Inc.’s cost performance over time for the three products.

 

b.    What additional information would you require in order to investigate Alvarez Manufacturing Inc.’s cost performance more precisely?

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 11:08 PM My Price 11.00

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