Ch07 adj Werner Jones Mgt Acctg PP97 2003

Such an order usually includes a discounted such

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Unformatted text preview: • Manufacturing business must often consider Manufacturing whether to accept a special order. • Such an order usually includes a discounted Such price for the items being ordered. ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Werner/Jones 7 ­ 19 LO4 Gather Relevant Information • Sears offers Alumafloat Company Sears $125 each for 1,000 boats. • Alumafloat’s normal selling price Alumafloat’s is $160 per boat. • The production cost per boat is $130. The • Expected sales (excluding the Expected special order) are 5,500 boats. ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Werner/Jones 7 ­ 20 LO4 Gather Relevant Information Alumafloat Expected sales Normal selling price Direct material costs Direct labor costs Variable production costs Fixed production costs Total cost of goods sold Per Unit 1 $160 Total 5,500 $880,000 $ 50 $275,000 55 302,500 10 55,000 15 82,500 $130 $715,000 Expected gross margin: $880,000 – $715,000 = $165,000 ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Wer...
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This note was uploaded on 03/16/2014 for the course ACC 212 taught by Professor Quintanna during the Spring '08 term at University of Miami.

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