Customer Service Chat
Get quote & make Payment
Question, Financial Accounting
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
Posted Date: 3/20/2013 7:20:31 AM | Location :
Ask an Expert
Question, Assignment Help, Ask Question on Question, Get Answer, Expert's Help, Question Discussions
Write discussion on Question
Your posts are moderated
Write your message here..
Bookkeeping, #explain the accounting cyclequestion..
#explain the accounting cyclequestion..
Accounting techniques, five modern accounting techniques
five modern accounting techniques
What should Peter do? Suggest alternative courses of action, Peter has wor...
Peter has worked for five years as an assistant accountant for a large garage and vehicle repair workshop. In the past two weeks he has noticed that one of the managers, Simon, ha
Illustration for company conversion-partnership, Illustration for company c...
Illustration for company conversion Kamau Maneno and Rotino have carried on partnership for several years, sharing profits and losses equally after allowing for annual salaries
Example of abc analysis, Illustration: Dinesh Limited is looking selective...
Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items A B
ACCRUED INTEREST, IF I HAVE A LOAN AND ACCRUED INTEREST .THEN ACCRUED INTER...
IF I HAVE A LOAN AND ACCRUED INTEREST .THEN ACCRUED INTEREST GOES ON WHICH SIDE- DEBIT OR CREDIT ?
Determine straight value and conversion value , Banana Computer has a perpe...
Banana Computer has a perpetual, convertible 7% annual coupon bond outstanding. The bond has a face value of $1,000 and has a conversion price of $40. The required return on an oth
Inventory of raw material, 1) Inventory of raw material are held to make su...
1) Inventory of raw material are held to make sure that the production process is not disrupted because of shortage of raw material. The amount of raw material inventory would base
The maximum possible loss method-partnership, The maximum possible loss met...
The maximum possible loss method Under this method, a table is set up to compute the amounts payable to each partner. The results of the computation may be then posted into the
Calculate break-even point and qualitative factors, Evaluating a Company's ...
Evaluating a Company's Budget Procedures Springfield Corporation operates on a calendar-year basis. It begins the annual budgeting process in late August, when the president
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.