Algonac Moldings produces a product made from a metal alloy. Two suppliers, Liebold Metal and Cecil Distributors, supply the alloy. Neither supplier can meet Algonac's typical demand, because of capacity constraints. The material from Liebold is less expensive to buy but more difficult to use, resulting in greater waste. The metal alloy is highly toxic and any waste requires costly handling to avoid environmental accidents. Last year the cost of handling the waste totaled $1,756,920. Additional data from last year's operations are shown as follows: Amount of material purchased (tons) Amount of waste (tons) Cost of purchases 2. Amount of waste. 3. Cost of material purchased. Req A1 Req A2 Required: a. Allocate the cost of the waste-handling to the two suppliers based on: 1. Amount of material purchased. Liebold Metals Req A3 Allocated waste handling cost 68.8 11.0 $ Complete this question by entering your answers in the tabs below. 2,178,581 Liebold Metals Cecil Distributors Amount of material purchased. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. 119.2 13.0 $ 4,849,099 Cecil Distributors $ Total 0

Algonac Moldings produces a product made from a metal alloy. Two suppliers, Liebold Metal and Cecil Distributors, supply the alloy. Neither supplier can meet Algonac's typical demand, because of capacity constraints. The material from Liebold is less expensive to buy but more difficult to use, resulting in greater waste. The metal alloy is highly toxic and any waste requires costly handling to avoid environmental accidents. Last year the cost of handling the waste totaled $1,756,920. Additional data from last year's operations are shown as follows: Amount of material purchased (tons) Amount of waste (tons) Cost of purchases 2. Amount of waste. 3. Cost of material purchased. Req A1 Req A2 Required: a. Allocate the cost of the waste-handling to the two suppliers based on: 1. Amount of material purchased. Liebold Metals Req A3 Allocated waste handling cost 68.8 11.0 $ Complete this question by entering your answers in the tabs below. 2,178,581 Liebold Metals Cecil Distributors Amount of material purchased. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. 119.2 13.0 $ 4,849,099 Cecil Distributors $ Total 0

Name: Algonac Moldings produces a product made from a metal alloy. Two supp
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Description: Algonac Moldings produces a product made from a metal alloy. Two suppliers, Liebold Metal and Cecil Distributors, supply the alloy.Neither supplier can meet Algonac's typical demand, because of capacity constraints. The material from Liebold is less

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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