material sampling - analyszing direct materials cost, Cost Accounting

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

Calculate operating income under throughput costing, The follow data relate...

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

Calculate the dead weight loss of the tariff, (a) Calculate Mexico's produc...

(a) Calculate Mexico's producer surplus and consumer surplus in autarky. (b) Calculate the number of Mexican imports with as well as without the Tarriff. (c) Calculate Mexico

Compute the manufacturing overhead, Slick Corporation is a small producer o...

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achie

Determine expected rate, Bebe, a manufacturer of sophisticated and fas...

Bebe, a manufacturer of sophisticated and fashionable women's clothing, is completing a new assembly plant in Malaysia. A final construction payment of 6,000,000 MY

Motivation - behavioural aspects of standards, Motivation - Behavioural Asp...

Motivation - Behavioural Aspects of Standards Variance analysis and standards setting requires to be carried out like it motivates managers and other employees. It should not

the practice of standard costing., Determine why JIT, TQM and AMTs may no...

Determine why JIT, TQM and AMTs may not always be entirely compatible with the practice of standard costing.

Cost drivers and predictors, why is determining the cost to manufacture a p...

why is determining the cost to manufacture a product quite a different activity from determining how to control such cost?

Methods fo costing, explain the different methods of costing

explain the different methods of costing

Prepare the journal entries to record depreciation, Moore Corporation follo...

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

306, creating a decision treeplan

creating a decision treeplan.

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd