Homework Answers
Note :
Solution
a) Relevant Cost per unit : 400 blankets per batch
Revenue (400 * 58 ) 23200
Less:
Material Cost (400 * 27) 10800
Labour Cost (400 * 21) 8400
Mfg Supplies (400 * 2) 800
Batch level Cost (4000 * 1) 4000
Net Income -800
Relevant costs are :-
Material Cost (400 * 27) 10800
Labour Cost (400 * 21) 8400
Mfg Supplies (400 * 2) 800
Batch level Cost ( 4000 * 1) 4000
Total costs 24000
units 400
Relevant cost per unit 60
The order should not be accepted
b) Relevant Cost per unit : 1000 blankets per batch
Revenue (1000 * 58 ) 58000
Less:
Material Cost (1000 * 27) 27000
Labour Cost (1000 * 21) 21000
Mfg Supplies (1000 * 2) 2000
Batch level Cost (4000 * 1) 4000
Net Income 4000
Relevant costs are :-
Material Cost (1000 * 27) 27000
Labour Cost (1000 * 21) 21000
Mfg Supplies (1000 * 2) 2000
Batch level Cost ( 4000 * 1) 4000
Total costs 54000
units 1000
Relevant cost per unit 54
The order should be accepted.
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Baird Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Baird Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Baird Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Baird made 26,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($27 per unit x 26,000) Labor cost ($21 per unit x 26,000) Manufacturing supplies ($2 x 26,000) Batch-level costs (26 batches at $4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $1,914,000 +...
Finch Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Finch Quilting Company makes blankets that it markets through a
variety of department stores. It makes the blankets in batches of
1,000 units. Finch made 26,000 blankets during the prior accounting
period. The cost of producing the blankets is summarized
here.
Sunny Motels has offered to buy a batch of 400 blankets for $60
each. Finch’s normal selling price is $96 per unit. Calculate the
relevant cost per unit for the special order. Based on the
preceding quantitative data, should...
Finch Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in b...
Finch Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Finch made 26,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($24 per unit × 26,000) $ 624,000 Labor cost ($19 per unit × 26,000) 494,000 Manufacturing supplies ($2 × 26,000) 52,000 Batch-level costs (26 batches at $8,000 per batch) 208,000 Product-level costs 280,000 Facility-level costs 310,000 Total...
Zachary Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Zachary Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,500 units. Zachary made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($26 per unit × 20,000) $ 520,000 Labor cost ($22 per unit × 20,000) 440,000 Manufacturing supplies ($3 × 20,000) 60,000 Batch-level costs (20 batches at $3,000 per batch) 60,000 Product-level costs 320,000 Facility-level costs 390,000 Total...
Munoz Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Munoz Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,000 units. Munoz made 28,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($31 per unit x 28,000) Labor cost ($29 per unit x 28,000) Manufacturing supplies ($2 x 28,000) Batch-level costs (14 batches at $4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,312,000 -...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2.500 units. Jordan made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($30 per unit * 25,000) Labor cost ($24 per unit * 25,000) Manufacturing supplies ($7 * 25,000) Batch-level costs (10 batches at $5,eee per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,065,000 +...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Jordan made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($30 per unit 25,000) Labor cost $24 per unit x 25,000) Manufacturing supplies ($7 ~ 25,000) Batch-level costs (10 batches at $5,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,065,000 = 25,000...
Fanning Quilting Company makes blankets that it markets through a variety of department stores. It makes...
Fanning Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Fanning made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($25 per unit × 25,000) $ 625,000 Labor cost ($20 per unit × 25,000) 500,000 Manufacturing supplies ($3 × 25,000) 75,000 Batch-level costs (10 batches at $5,000 per batch) 50,000 Product-level costs 240,000 Facility-level costs 300,000 Total...
Baird Chemical Company makes a variety of cosmetic products, one of which is a skin cream...
Baird Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging. Baird produces a relatively small amount (17,000 units) of the cream and is considering the purchase of the product from an outside supplier for $4.70 each. If Baird purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Baird's accountant constructed the following profitability analysis: Revenue (17,000 units...
Baird Chemical Company makes a variety of cosmetic products, one of which is a skin cream...
Baird Chemical Company makes a variety of cosmetic products, one
of which is a skin cream designed to reduce the signs of aging.
Baird produces a relatively small amount (17,000 units) of the
cream and is considering the purchase of the product from an
outside supplier for $4.70 each. If Baird purchases from the
outside supplier, it would continue to sell and distribute the
cream under its own brand name. Baird’s accountant constructed the
following profitability analysis:
Identify the cost...
Baird Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Baird made 26,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($27 per unit x 26,000) Labor cost ($21 per unit x 26,000) Manufacturing supplies ($2 x 26,000) Batch-level costs (26 batches at $4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $1,914,000 +...
Finch Quilting Company makes blankets that it markets through a
variety of department stores. It makes the blankets in batches of
1,000 units. Finch made 26,000 blankets during the prior accounting
period. The cost of producing the blankets is summarized
here.
Sunny Motels has offered to buy a batch of 400 blankets for $60
each. Finch’s normal selling price is $96 per unit. Calculate the
relevant cost per unit for the special order. Based on the
preceding quantitative data, should...
Munoz Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,000 units. Munoz made 28,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($31 per unit x 28,000) Labor cost ($29 per unit x 28,000) Manufacturing supplies ($2 x 28,000) Batch-level costs (14 batches at $4,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,312,000 -...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2.500 units. Jordan made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($30 per unit * 25,000) Labor cost ($24 per unit * 25,000) Manufacturing supplies ($7 * 25,000) Batch-level costs (10 batches at $5,eee per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,065,000 +...
Jordan Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 2,500 units. Jordan made 25,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($30 per unit 25,000) Labor cost $24 per unit x 25,000) Manufacturing supplies ($7 ~ 25,000) Batch-level costs (10 batches at $5,000 per batch) Product-level costs Facility-level costs Total costs Cost per unit = $2,065,000 = 25,000...
Baird Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging. Baird produces a relatively small amount (17,000 units) of the cream and is considering the purchase of the product from an outside supplier for $4.70 each. If Baird purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Baird's accountant constructed the following profitability analysis: Revenue (17,000 units...
Baird Chemical Company makes a variety of cosmetic products, one
of which is a skin cream designed to reduce the signs of aging.
Baird produces a relatively small amount (17,000 units) of the
cream and is considering the purchase of the product from an
outside supplier for $4.70 each. If Baird purchases from the
outside supplier, it would continue to sell and distribute the
cream under its own brand name. Baird’s accountant constructed the
following profitability analysis:
Identify the cost...
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