Describe the qualitative factors that ellis quilting

Assignment Help Accounting Basics
Reference no: EM13599167

Ellis Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Ellis made 20,000 blankets during the prior accounting period. The cost of producing the blankets is summarized her.

  • Materials cost ($25 per unit * 20,000) $ 500,000
  • Labor cost ($22 per unit * 20,000) 440,000
  • Manufacturing supplies ($2 * 20,000) 40,000
  • Batch-level costs (20 batches at $4,000 per batch) 80,000
  • Product-level costs 160,000
  • Facility-level costs 290,000
  • Total costs $1,510,000
  • Cost per unit = $1,510,000 / 20,000 = $75.50

Required

a. Kent Motels has offered to buy a batch of 500 blankets for $56 each. Ellis's normal selling price is $90 per unit. Based on the preceding quantitative data, should Ellis accept the special order? Support your answer with appropriate computations.

b. Would you answer to Requirement a change if Kent offered to by a batch of 1,000 blankets for $56 per unit? Support your answer with appropriate computations.

c. Describe the qualitative factors that Ellis Quilting Company should consider before accepting a special order to sell blankets to Kent Motels.

Reference no: EM13599167

Questions Cloud

Shepler boot company makes specialty boots for the rodeo : shepler boot company makes specialty boots for the rodeo circuit. on december 31 2010 the company had a 500 pairs of
Y company offers its customers credit of 210n 30 most : y company offers its customers credit of 210n 30. most customers take advantage of the cash discount mailing their
You are the chief financial officer cfo for a milley ltd a : you are the chief financial officer cfo for a milley ltd a book publisher located inbrisbane. the companys office and
Kirby airlines is a small airline that occasionally carries : kirby airlines is a small airline that occasionally carries overload shipment for the overnight delivery company
Describe the qualitative factors that ellis quilting : ellis quilting company makes blankets that it markets through a variety of department stores. it makes the blankets in
The steps in the accounting cycle for a merchandising : the steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service
A firm applies fixed manufacturing overhead costs based on : a firm applies fixed manufacturing overhead costs based on the number of machine hours.last year the firm incurred
Prepare journal entries for each of the above : castleman holdings inc. had the following available-for-sale investment portfolio at january 1 2010. 1000 shares of
Hunt manufacturing makes tents that it sells directly to : hunt manufacturing makes tents that it sells directly to camping enthusiasts through a mail order marketing program.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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