Question, Financial Accounting

Assignment Help:
A. Material Sampling -Analyzing Direct Material Costs
You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After
Initial examination of the proposal, you note that there are 500 material items, but you also note
that 20 high-cost items account for $620,000 of the total. The remaining $180,200 is spread
across 480 relatively small purchases.
1. Examination of the 20 high-cost items (estimated at $620,000) shows that all are properly
priced except one item. That item is overpriced by $20,000. What should be your
objective for these 20 items?
2. After analyzing a sample of the remaining 480 items, you find that the sample is
overpriced by six percent. Using this six percent decrement factor, what cost should you
estimate for those items? Remember that the average sample •tern cost is 106 percent of
what it ought to be.
3. Given your answers to Questions 1 and 2, what should you estimate for total material
cost?

Related Discussions:- Question

Determine the indicated market price per share, Q. Determine the indicated ...

Q. Determine the indicated market price per share? Your company's share is quoted in the market at Rs.20 Presently. The company pays a dividend of Rs.1 per share and the invest

What is the present value of these future savings?, a) A company has 7000 o...

a) A company has 7000 obsolete toys carried in inventory at a manufacturing cost of $6 per unit. If the toys are reworked for $2 per unit, they could be sold for $3 per unit. If th

Various types of accounting changes can affect the financial, Various types...

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material

Financial accounting , a. Create a worksheet in your excel file and name it...

a. Create a worksheet in your excel file and name it "Part A Q2". In column A to E set up general journal and input the necessary journal entries to record the transactions and eve

Example on investment appraisal method, Q. Example on investment appraisal ...

Q. Example on investment appraisal method ? Contribution per unit = 3·00 - 1·65 = $1·35 per unit Total annual contribution = 20000 × 1·35 = $27000 per year Annual cash fl

Internal audit department and financial statements, 1.  What cost flow assu...

1.  What cost flow assumption does the company use to value inventories? 2.  What was the amount of expense that the company reported for inventory write-downs during 2011? 3

Duties of trustees-trusts laws and accounts, DUTIES OF TRUSTEES 1) Not ...

DUTIES OF TRUSTEES 1) Not to profit from the trust : A trustee may not receive remuneration except: By order of the court, if the trust is very onerous or the services of the

MBA 2nd semester assigenment, Considering the following information, what i...

Considering the following information, what is the price of the share as per Gordon’s Model? Details of the Company Net sales Rs.120 lakhs Net profit margin 12.5% Outstanding prefe

Prepare a balance sheet and trial balance, Requirements: a.   Record the...

Requirements: a.   Record the following transactions in the journal of Howell Consulting. Explanations are not required. b.   Create T accounts for each transaction (Use the

What is its wacc, You were hired as a consultant to Giambono Company, whose...

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost

Write Your Message!

Captcha
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