Job-Order Costing
Two products $\mathrm{A}$ and $\mathrm{B}$ are produced from material $\mathrm{Z}$ with a batch size of 40. Consumption is the same for each product: $50 \mathrm{~g}$ per product $\mathrm{A}$ or $\mathrm{B}$. The cost of $1 \mathrm{~kg}$ of material Z is $$\$ 20$$.
For the sake of simplicity and comparison in our example, the manufacturing process is the same for products $\mathrm{A}$ and $\mathrm{B}$ : two operations $(1$ and 2$)$ at two work centers (WCl and WC2). The standard time for each operation is 1 hour per 40 units. Assume that setup time is negligible.
To calculate the costs of the manufacturing process, it is important to take into account the costs of the two work centers WCl and WC2 in addition to the standard times. As Figure 15.7.1.1 shows, WCl is more machine intensive, while WC2 is more employee intensive. The investments will be depreciated in 5 years, assuming 1000 productive hours per year. Further, assume that these costs make up the full manufacturing costs.
(COLUMN CANT COPY)
Following the principle of job-order costing, determine the cost accumulation values for products A and B marked "?" in the tables in Figures 15.7 .1 .2 and 15.7 .1 .3 (compare Figure 15.2.2.1.)