Shuster Industries Manufactures Baseballs and Identified the Following Costs Associated

Essay

Shuster Industries manufactures baseballs and identified the following costs associated with their manufacturing activity (V = Variable; F = Fixed). The following information is available for the month of June when 25,000 baseballs were produced, but only 23,500 baseballs were sold.
$$\begin{array} { l r } \text { Power to nin plant equipment } ( \mathrm { V } ) &\$ 25,000 \\\text { Other selling costs } ( \mathrm { V } ) & 149,150 \\\text { Indirect labor } ( \mathrm { F } ) & 50,000 \\\text { Property taxes on factory building } ( \mathrm { F } ) & 12,500 \\\text { Marketing costs } ( \mathrm { V } ) & 30,000 \\\text { Factory Supervisor salaries } ( \mathrm { F } ) & 125,000 \\\text { Direct materials used } ( \mathrm { V } ) & 500,000 \\\text { Depreciation on plarnt equiprnent } ( \mathrm { F } ) & 68,000 \\\text { Shipping costs to custorner } ( \mathrm { V } ) & 48,800 \\\text { Indirect material and supplies } ( \mathrm { V } ) & 37,500 \\\text { Direct labor } ( \mathrm { V } ) & 250,000 \\\text { Adrninistrative salaries } ( \mathrm { F } ) & 300,000 \\\text { Insurance on factory building } ( \mathrm { F } ) & 62,500 \\\text { Utilities, factory } ( \mathrm { V } ) & 50,000 \\\text { General office costs } ( \mathrm { F } ) & 48,000\end{array}$$
Required:
Compute the following amounts for July, assuming 30,000 baseballs were produced and sold: (Assume normal production ranges from 15,000 to 40,000 baseballs)
(a) Total manufacturing costs.
(b) Total conversion costs.
(c) Period costs per unit.
(d) Full costs per unit.