Reference no: EM13376352
A key customer has asked Bob, the Sales Manager, if the Company is able to supply a new guitar-like instrument, the ukulele. The initial order is expected to be 10,000 units.
Following information:
Production Data for the six months ended 30 June 2013
![891_Estimated annual overhead and direct labour costs.png](https://secure.expertsmind.com/CMSImages/891_Estimated%20annual%20overhead%20and%20direct%20labour%20costs.png)
Additional information:
i. Estimated annual overhead and direct labour costs for 2013 are $150,000 and $200,000 respectively.
ii. Estimated additional costs to be incurred to produce 10,000 units of ukulele Strings made from a special material $ 20,000
Carpenters $ 3,000
Tuning technicians $ 2,000
iii. Similar to the guitar, direct materials and conversion costs are incurred evenly throughout the process.
(a) Using the weighted average method, prepare a Production Report for the six months ended 30 June 2013 for Melody Instruments Co, Ltd.