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Construct the Product Chart find the total cost of production based on the following production process for a requirement of 250 units of A
Construct the Product Chart find the total cost of production based on the following production process for a requirement of 250 units of A. Parent components On hand inventory Cost per unit when produced A B ? D E F Sub components (number required) B(2); C(2); D(1) C(1):D(3) E(2), F(1) E(3) F(2) $30 $25 $15 $35 $10 40 100 400 900 500 1500 QUESTION 2 Construct the Product Chart find the total cost of production based on the following production process for a requirement of 100 units. On hand inventory Parent components Cost per unit when produced A B ? D E F Sub components (number required) B(1):C(1):D(3) D(2): E(1) E(2): F(3) E(2) $45 $20 $10 $15 $20 80 50 100 75 400 All subcomponents are procured for of A
Expert Solution
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Ans :
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Level 0 (FG) |
Component A = 1 Unit |
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|
Level 1 (A Main component) |
Component B = 1*2=2Units |
Component C = 1*2=2Units |
Component D = 1*1= 1 Unit |
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|
Level 2 (Sub component) |
Component C= 2 *1=2 Units |
Component D = 2*3 = 6 Units |
Component E = 2*2 = 4 Units |
Component F = 2* 1 = 2 Units |
Component E = 1*3 = 3 Units |
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|
Level 3 (Sub component) |
Component F = 4* 2 = 8 Units |
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Level 0 (FG) |
Component A = 250Units |
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|
Level 1 (A Main component) |
Component B = 250*2=500 Units |
Component C = 250*2 = 500 Units |
Component D = 250*1 = 250 Units |
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|
Level 2 (Sub component) |
Component C= 500*1=500 Units |
Component D = 500*3 = 1500 Units |
Component E = 500*2 = 1000 Units |
Component F = 500* 1 = 500 Units |
Component E = 250*3 = 750 Units |
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|
Level 3 (Sub component) |
Component F = 1000* 2 = 2000 Units |
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|
Product Cost |
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|
Material |
Details |
Amount |
|
B |
500 * 30 |
1500 |
|
C |
(500+500) * 25 |
2500 |
|
D |
(250+1500) * 15 |
26250 |
|
E |
(1000+750) * 35 |
61250 |
|
F |
(500+2000) * 10 |
25000 |
|
Total cost of 250 units of A |
116500 |
|
Level 0 (FG) |
Component A = 100Units |
|||||
|
Level 1 (A Main component) |
Component B = 100*1=100 Units |
Component C = 100*1 = 100 Units |
Component D = 100*3 = 300 Units |
|||
|
Level 2 (Sub component) |
Component D = 100*2=200 Units |
Component E = 100*1 = 100 Units |
Component E = 100*2 = 200 Units |
Component F = 100* 3 = 300 Units |
Component E = 300*2 = 600 Units |
|
|
Product Cost |
||
|
Material |
Details |
Amount |
|
B |
100 * 45 |
4500 |
|
C |
100* 20 |
2000 |
|
D |
(300+200) * 10 |
5000 |
|
E |
(100+200) * 15 |
4500 |
|
F |
(300+600) * 20 |
18000 |
|
Total cost of 100 units of A |
34000 |
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