+1-415-670-9189
info@expertsmind.com
Gruner also incurs 7 sales commission 048 on each disc
Course:- Accounting Basics
Reference No.:- EM13601444




Assignment Help
Assignment Help >> Accounting Basics

Gruner Company produces golf discs which it normally sells to retailers for $6.89 each. The cost of manufacturing 17,300 golf discs is:

  • Materials $8,996
  • Labor 24,393
  • Variable overhead 18,857
  • Fixed overhead 33,908
  • Total $86,154

Gruner also incurs 7% sales commission ($0.48) on each disc sold.Travis Corporation offers Gruner $4.82 per disc for 4,700 discs. Travis would sell the discs under its own brand name in foreign markets not yet served by Gruner. If Gruner accepts the offer, its fixed overhead will increase from $33,908 to $38,718 due to the purchase of a new imprinting machine. No sales commission will result from the special order.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
What are the main components of Zain "Consolidated annual financial statements and independent auditor's report 31 December 2013"? And Zain financial statements are prepare
Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, t
The headquarters of Hill Crest Corporation, a private company with $15.5 million in annual sales, is located in California. Hill Crest provides for its 150 clients an online
If the consumer advocate plans to purchase 100 boxes of the product, then file suit against the company if more than 5 of the boxes have content weights below the 20-ounce s
In taking a physical inventory on December 31, Jensen counted all goods on hand and priced the inventory on the basis of average cost. The total amount was $600,000. No good
What is the difference in treatment when an incoming partner purchases an interest by agreeing to perform services for the partnership and the partnership (1) gives a 25% in
The Sarbanes-Oxley Act of 2002 (SOX) has emphasized the importance of ethical ehaviour and codes of conduct. Discuss the costs and benefits of the ethical environment. If a
The second part of the Financial Statements paper will look at the financial statements of Home Depot to ascertain how effective the company's management is in achieving its