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Question - S. Lee Enterprises produces two models of lawn tractor: SL1 and SL2. The models are both produced in the company's Louisville factory and go through identical assembly operations. The difference is in the quality (hence, cost) of the parts used. The following data are available for November, the latest month for which information is available:
SL1
SL2
Total
Number assembled
1,700
2,200
3,900
Materials cost per tractor
$1,300
$1,800
Other costs:
Direct labor
$1,600,000
Supplies
560,000
Other overhead
3,105,000
Required: S. Lee Enterprises uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in November.
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