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Category > Management Posted 20 Feb 2018 My Price 7.00

Zoe Company Corporation

Zoe Company Corporation manufactures a variety of liquid lawn fertilizers, including a very popular product called SuperFood. Data about SuperFood and XP, a major ingredient, follow.
Expected operations:

 

XP is purchased in 55-gallon drums at a cost of $65 per drum. A 2% cash discount is offered by XP's manufacturer for prompt payment of invoices, and Vanderhaus takes advantage of all discounts offered.

 

Vanderhaus normally purchases 200 drums of XP at a time, paying shipping fees of $2,660 per shipment. Each gallon of SuperFood requires three quarts of XP; however, because of evaporation and spills, Zoe loses 4% of of all XP that enters production.
Actual operations:

 

For the period just ended, Zoe purchased 1,500 drums of XP at a total cost of $118,100, which reflects discounts and shipping. There was no beginning inventory, but an end-of-period inventory revealed that 30 drums were still on hand.

 

Manufacturing activity output totaled 104,000 gallons of SuperFood. Compute the material price standard

 

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Feb 2018 06:02 PM My Price 7.00

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