Answer To: CHAPTER 6: QUESTIONS {6-24, 6-26, 6-43} PLEASE ANSWER EACH CHAPTER ON DIFFERENT EXCEL FILES. PLEASE...
Sanjeev answered on Feb 15 2021
Chapter 11
11--26
In case all materails are purchased at once In case all materails are purchased at a lot of 17000
Purchase Price 1,799,280.00 Purchase Price 1,836,000.00
Order cost 260.00 Order cost 3,120.00
Holding cost 10,200.00 Holding cost 850.00
Total inventory cost 1,809,740.00 Total inventory cost 1,839,970.00
1 Opportunity cost of interest foregone 9,350.00
2 No, this cost won't be recorded in the accounting system as this cost has not been incurred by the company in actual as its only opportunity cost.
3 Best Trim should purchase 204000 units at the start of the year as the company incur lower cost as compared to purchase in a lot 17000 units.
4 The company should endure that the inventory is not perishable products and thus, it can be stored for a long period of time.
11--31
Particulars Wallace kimberly Total
Revenues 240,000.00 160,000.00 400,000.00
Variable cost 129,600.00 112,000.00 241,600.00
Contribution 110,400.00 48,000.00 158,400.00
Machine hours 2,400.00 800.00 3,200.00
Cont/hours 46.00 60.00
Particulars Wallace kimberly Total
Machine hours to be allocated 1,600.00 1,600.00 3,200.00
Revenues 160,000.00 320,000.00 480,000.00
Variable cost 86,400.00 224,000.00 310,400.00
Contribution 73,600.00 96,000.00 169,600.00
Fixed cost (allocated on the basis of revenues) 41,666.67 83,333.33 125,000.00
Profit 31,933.33 12,666.67 44,600.00
Other factors: The company should ensure that such special orders won't affect the demand of product from regular customers in the near future.
11--34
Particulars Cost per bat Total costs
Direct materials 14 756000
Variable labour cost 4 216000
Variable overhead 2 108000
Fixed manufcturing overhead 5 270000
Variable Selling expenses 2 108000
Fixed selling expenses 3 162000
30
1 Total relevant cost for the special order:
Particulars Cost per bat
Direct materials 14
Variable labour cost 4
Variable overhead 2
20
The company received a special order of 10,000 bats...