Business, 14.02.2020 18:27 brainlord4209
Thornton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,000 units. Thornton made 35,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.
Materials cost ($10 per unit × 20,000) $200,000
Labor cost ($9 per unit × 20,000) 180,000
Manufacturing supplies ($1.50 × 20,000) 30,000
Batch-level costs (20 batches at $2,000 per batch) 40,000
Product-level costs 80,000
Facility-level costs 145,000
Total costs $675,000
Cost per unit = $675,000 ÷ 20,000 = $33.75
Required
Sunny Motels has offered to buy a batch of 500 blankets for $23.50 each. Thorton's normal selling price is $45 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Thorton accept the special order?
Answers: 1
Business, 22.06.2019 23:50
For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.
Answers: 1
Business, 23.06.2019 00:10
Kcompany estimates that overhead costs for the next year will be $4,900,000 for indirect labor and $1,000,000 for factory utilities. the company uses direct labor hours as its overhead allocation base. if 100,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?
Answers: 3
Business, 23.06.2019 00:10
Warren company plans to depreciate a new building using the double declining-balance depreciation method. the building cost $870,000. the estimated residual value of the building is $57,000 and it has an expected useful life of 20 years. assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year?
Answers: 2
Business, 23.06.2019 01:50
The de mesa family will soon be occupying their newly renovated house. however, the bathroom measuring 10ft. by 16 ft. still needs to be covered by tiles. if the tile that they desire measures 2/5 ft by 2/5 ft., how many tiles will they need to cover the bathroom floor?
Answers: 3
Thornton Quilting Company makes blankets that it markets through a variety of department stores. It...
Mathematics, 12.01.2021 18:50
Computers and Technology, 12.01.2021 18:50
English, 12.01.2021 18:50
Mathematics, 12.01.2021 18:50
History, 12.01.2021 18:50
Mathematics, 12.01.2021 18:50
History, 12.01.2021 18:50
History, 12.01.2021 18:50
History, 12.01.2021 18:50