[lprado521]

This company has two products: Kasement and lasient

Kasement Lasient
Direct materials $7 $7
Direct labor hours 0.5 0.5
Direct labor cost/hr $10 $10
Sales price per unit $32 $38

Value of
Total costs Allocation Base allocation base
Equip. Setups $12,500,000 # of setups 50,000
purchase orders $8,000,000 # of orders 160,000
machining $12,000,000 # of machine hrs 1,000,000
testing $3,600,000 # of testing hrs 600,000
packaging $4,600,000 # of containers 1,000,000

kasement lasient
annual sales & production in units 240,000 4,800
# of units/batch 150 40
#of orders 450 80
# of machine hrs/unit 0.40 0.80
testing hours 12,000 8,400
# of containers 1,400 600


Q: Prepare and income statement for each product using the traditional accounting system. The income statements should be prepared on a total basis and then show the average net operating income per unit using the following template for guidance:

kasement lasient
Sales $$$ $$$
Direct materials $$$ $$$
Direct labor $$$ $$$
manufacturing overhead $$$ $$$
Total costs $$$ $$$
Net operating income $$$ $$$


average operating income/unit $$$ $$$

[smoothy]

Read the rules...

Read this first: Expectations for the Homework Help board
Do not simply retype or paste a question from your book or study material

We won't do your homework questions for you.
You were given the assignment for you to learn.

If you come up with your own answer and post it for us to critique that is within reason.

If you have some SPECIFIC questions that you couldn't find or didn't understand, we may help with that.
But this is your assignment, so show us you have at least attempted to complete it on your own.

Thank you.