Answer is $5,374
Park Corporation is preparing a bid for a special order that would require 780 liters of...
Park Corporation is preparing a bid for a special order that would require 740 liters of material SUN100. The company already has 580 liters of this raw material in stock that originally cost $6.50 per liter. Material SUN100 is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $5.90 per liter. New stocks of the material can be readily purchased for $6.85 per liter. What...
Lafferty Corporation is a specialty component manufacturer with idle capacity. Management would like to use its unused capacity to generate additional profits. A potential customer has offered to buy 6,370 units of component Rocket. Each unit of Rocket requires 8 units of material CES4 and 6 units of material XEST. Data concerning these two materials follow. Material CES4 XES7 Units in Stock 49,420 32,760 Original Cost Per Unit $4.14 $9.64 Current Market Price Per Unit $ 4.20 $10.45 Disposal Value...
Bialas Corporation uses a standard cost system in which Inventories are recorded at their standard costs and any varlances are closed directly to Cost of Goods Sold. The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit. During the year, the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units...