material sampling - analyszing direct materials cost, Cost 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:- material sampling - analyszing direct materials cost

Explanations on the correct fixation of selling pric, Explanations on the c...

Explanations on the correct fixation of selling price

Issuance of stock - shares of common stock, 1. Issuance of stock Prepa...

1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: a. Jacks

Estimate finished goods cost of goods sold , ln an attempt to conceal a the...

ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion left only fragments o

Cvp for multiple products, CVP for Multiple Products What number of bus...

CVP for Multiple Products What number of businesses sells only one manufactured goods? The reality is that firms usually give us the diverse product line, and the individual pr

Marvin''s motors company (mmc) manufactures outboard, Marvin's Motors Compa...

Marvin's Motors Company (MMC) manufactures outboard motors for use on small to medium sized boats. MMC produces three models: the Standard, the Deluxe and the Performance. The comp

Opportunity costs are relevant costs, Opportunity Costs Are Relevant Costs ...

Opportunity Costs Are Relevant Costs Opportunity cost introduces an additional concept that is not available like part of normal cost analysis in the accounting record system.

Explain inaccurate financial statemnts, Generally Accepted Accounting Princ...

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statemnents. Let's start by getting an understanding of

Calculate the ß, Calculate the β of Maine Corporation from the following da...

Calculate the β of Maine Corporation from the following data. The prices are at the beginning and at the end of each year     Normal 0 false false

Elements of non - manufacturing costs, Elements of Non - Manufacturing cost...

Elements of Non - Manufacturing costs Non-Manufacturing costs are costs incurred via all activities such support the production of services and goods. They are selling costs

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