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Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would purchased. Requirement 1. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Juicy make or buy the bottles? (Round the cost per bottle to three decimal places.) Direct materials Direct labor Variable factory overhead Avoidable annual fixed factory overhead Purchase cost Total relevant costs Make Total Per Bottle Total $ 104,500 $ 0.095 $ 45,100 $ 0.041 71,500 0.065 60,000 Buy Data table Per Bottle Juicy Company Cost of Making 17.5-Ounce Bottles 275,000 0.250 Total Cost for 1,100,000 Bottles Cost per Bottle $ 281,100 $ 275,000 $ 0.250 Direct materials 104,500 $ 0.095 Direct labor 45,100 0.041 Variable factory overhead 71,500 0.065 Fixed factory overhead 90,200 0.082 $ 311,300 $ 0.283 Total Print Done - X

Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would purchased. Requirement 1. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Juicy make or buy the bottles? (Round the cost per bottle to three decimal places.) Direct materials Direct labor Variable factory overhead Avoidable annual fixed factory overhead Purchase cost Total relevant costs Make Total Per Bottle Total $ 104,500 $ 0.095 $ 45,100 $ 0.041 71,500 0.065 60,000 Buy Data table Per Bottle Juicy Company Cost of Making 17.5-Ounce Bottles 275,000 0.250 Total Cost for 1,100,000 Bottles Cost per Bottle $ 281,100 $ 275,000 $ 0.250 Direct materials 104,500 $ 0.095 Direct labor 45,100 0.041 Variable factory overhead 71,500 0.065 Fixed factory overhead 90,200 0.082 $ 311,300 $ 0.283 Total Print Done - X

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6EA: Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in...
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Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would purchased. Requirement 1. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Juicy make or buy the bottles? (Round the cost per bottle to three decimal places.) Direct materials Direct labor Variable factory overhead Avoidable annual fixed factory overhead Purchase cost Total relevant costs Make Total Per Bottle Total $ 104,500 $ 0.095 $ 45,100 $ 0.041 71,500 0.065 60,000 Buy Data table Per Bottle Juicy Company Cost of Making 17.5-Ounce Bottles 275,000 0.250 Total Cost for 1,100,000 Bottles Cost per Bottle $ 281,100 $ 275,000 $ 0.250 Direct materials 104,500 $ 0.095 Direct labor 45,100 0.041 Variable factory overhead 71,500 0.065 Fixed factory overhead 90,200 0.082 $ 311,300 $ 0.283 Total Print Done - X
Transcribed Image Text:Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would purchased. Requirement 1. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Juicy make or buy the bottles? (Round the cost per bottle to three decimal places.) Direct materials Direct labor Variable factory overhead Avoidable annual fixed factory overhead Purchase cost Total relevant costs Make Total Per Bottle Total $ 104,500 $ 0.095 $ 45,100 $ 0.041 71,500 0.065 60,000 Buy Data table Per Bottle Juicy Company Cost of Making 17.5-Ounce Bottles 275,000 0.250 Total Cost for 1,100,000 Bottles Cost per Bottle $ 281,100 $ 275,000 $ 0.250 Direct materials 104,500 $ 0.095 Direct labor 45,100 0.041 Variable factory overhead 71,500 0.065 Fixed factory overhead 90,200 0.082 $ 311,300 $ 0.283 Total Print Done - X
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