Calculation of ending cost of inventory

Assignment Help Financial Accounting
Reference no: EM1311982

Calculation of ending cost of inventory.

The company has an offer from a wholesaler to purchase the part for $31 per unit.  If the company decides to accept the offer the cost for this part will increase or decrease by__ per unit?

Hint:  Cost of ending inventory $172,286

Calculation of cost per unit

The Walter Jewelry Company produces a bracelet which normally sells for $79.95.  The company produces 1,500 units annually but has the capacity to produce 2,000 units.  A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations.  Current costs for the bracelet are as follows:

Direct materials

$17.00

Direct labor

14.50

Variable overhead

4.00

Fixed overhead

    5.00

Total

$40.50

 

Reference no: EM1311982

Questions Cloud

Describing five step hypothesis testing procedure : At the 0.05 level of significance, can we conclude Middletown students remained in their districts less time than Brockton students?  Make use of 5-step hypothesis testing procedure.
Subsidiary corporation as well as calculation of income : Sale of Machinery to Subsidiary Corporation as well as Calculation of Income in Acquired Company
What is the final temperature of the coffee : The magnitude of each force is 204 N, the force on the right is applied at the angle 29 and the mass of the block is 12kg. The coefficient of friction is 0.138. The acceleration of gravity is 9.8 m/s2. What is the magnitude of the resulting accelerat..
Substitution effects of an increase in price of a product : Using the utility maximization rule as your point of reference elucidate the income also substitution effects of an increase in the price of a product with no change in the other product.
Calculation of ending cost of inventory : Calculation of ending cost of inventory and Calculation of cost per unit
Find the force of friction acting on car : At a construction site, a 63.0 bucket of concrete hangs from a light (but strong) cable that passes over a light friction-free pulley and is connected to an 83.0 box on the horizontal roof. The cable pulls horizontally on the box, and a 45.0 bag of g..
Conditional probability using contingency table : Find the probability that the driver was intoxicated or the pedestrian was not intoxicated?
Assumption of independence of risks : Why does the assumption of independence of risks matter in the examples of insurance.
Advantages and disadvantages of pollution permits : Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Decision making as to process further

Decision making as to process further or sale out - Should MSB and CBL be processed further or sold immediately after initial milling

  Prepare a statement of cash flows

Prepare a Statement of Cash Flows in good form using the above information and the indirect method. Prepare the Net Cash Provided by Operating Activities section, using the above information, using the direct method.

  Make a capital structure decision

What important factors, in addition to quantitative factors, should a firm consider when it is making a capital structure decision? How do these factors play in the decision?

  Compute the unit variable cost for a helmet

Compute the unit variable cost for a helmet - evaluatethe unit variable cost  with the given data.

  Prepare a trial balance for the month ended march

Record the following transactions in the general journal - Prepare a trial balance for the month ended March 31, 2007

  Determine the current years overhead application rate

Determine the current year's overhead application rate

  What is the most assembly division would be willing to pay

The Assembly Division of the same company needs a part that is just like Product A. The Assembly Division can choose whether to buy Product A from an outside supplier for $14.15 or buy it internally from the Parts Division.  and evaluate the most ..

  Distinguish between direct and indirect costs

Which one of the subsequent statements best explains why companies want to distinguish between direct and indirect costs?

  Prepare the consolidated financial statements

Prepare the consolidated financial statements for 20X3 using the direct method. Using the deferral method, prepare a statement of revenues and expenses and a statement of changes in net assets for Wise Owls for 20X1.

  Evaluate the internal depreciation charge

Evaluate the internal depreciation charge that was made last year

  Prepare a memo with recommendations regarding budget

Purpose a letter/memo to the company's CEO with specific recommendations regarding your budget.

  What is the increase or decrease in liabilities

What is the increase or decrease in liabilities of Hodges as of October 31, 2013?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd