Glasgow Enterprises started the period with 65 units in beginning inventory that cost $2.60 each. During the period, the company purchased inventory items as follows. Purchase No. of Items Cost 1 300 $3.10 2 200 $3.20 3 55 $3.60 Glasgow sold 325 units after purchasing 3 for $10.90 each. Glasgow's cost of goods sold under FIFO would be Purchases, $100,000; beginning inventory, $20,000; and ending inventory, $30,000. How much was the cost of goods sold? A. $50,000. B. $90,000. C. $45,000. D. $30,000. Country Jeans Co. has an annual plant capacity of 64,600 units, and current production is 43,500 units. Monthly fixed costs are $38,100, and variable costs are $25 per unit. The present selling price is $34 per unit. On February 2, 2014, the company received an offer from Miller Company for 14,300 units of the product at $28 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. Prepare a differential analysis on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.
Glasgow Enterprises started the period with 65 units in beginning inventory that cost $2.60 each. During the period, the company purchased inventory items as follows. Purchase No. of Items Cost 1 300 $3.10 2 200 $3.20 3 55 $3.60 Glasgow sold 325 units after purchasing 3 for $10.90 each. Glasgow's cost of goods sold under FIFO would be Purchases, $100,000; beginning inventory, $20,000; and ending inventory, $30,000. How much was the cost of goods sold? A. $50,000. B. $90,000. C. $45,000. D. $30,000. Country Jeans Co. has an annual plant capacity of 64,600 units, and current production is 43,500 units. Monthly fixed costs are $38,100, and variable costs are $25 per unit. The present selling price is $34 per unit. On February 2, 2014, the company received an offer from Miller Company for 14,300 units of the product at $28 each. Miller Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Country Jeans Co. Prepare a differential analysis on whether to reject (Alternative 1) or accept (Alternative 2) the Miller order. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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![Glasgow Enterprises started the period with 65 units in beginning inventory that cost
$2.60 each. During the period, the company purchased inventory items as follows.
Purchase No. of Items Cost
1
300
$3.10
2
200
$3.20
3
55
$3.60
Glasgow sold 325 units after purchasing 3 for $10.90 each.
Glasgow's cost of goods sold under FIFO would be
Purchases, $100,000; beginning inventory, $20,000; and ending inventory, $30,000.
How much was the cost of goods sold?
A. $50,000.
B. $90,000.
C. $45,000.
D. $30,000.
Country Jeans Co. has an annual plant capacity of 64,600 units, and current
production is 43,500 units. Monthly fixed costs are $38,100, and variable costs are $25
per unit. The present selling price is $34 per unit. On February 2, 2014, the company
received an offer from Miller Company for 14,300 units of the product at $28 each.
Miller Company will market the units in a foreign country under its own brand name.
The additional business is not expected to affect the domestic selling price or
quantity of sales of Country Jeans Co. Prepare a differential analysis on whether to
reject (Alternative 1) or accept (Alternative 2) the Miller order. What is the minimum
price per unit that would produce a positive contribution margin? Round your answer
to two decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb9d22ca-c5e1-47b6-a22b-402360d248bf%2F6711f40f-0db4-407b-9ac3-7d7b19c06a4d%2Fhgnsdrz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Glasgow Enterprises started the period with 65 units in beginning inventory that cost
$2.60 each. During the period, the company purchased inventory items as follows.
Purchase No. of Items Cost
1
300
$3.10
2
200
$3.20
3
55
$3.60
Glasgow sold 325 units after purchasing 3 for $10.90 each.
Glasgow's cost of goods sold under FIFO would be
Purchases, $100,000; beginning inventory, $20,000; and ending inventory, $30,000.
How much was the cost of goods sold?
A. $50,000.
B. $90,000.
C. $45,000.
D. $30,000.
Country Jeans Co. has an annual plant capacity of 64,600 units, and current
production is 43,500 units. Monthly fixed costs are $38,100, and variable costs are $25
per unit. The present selling price is $34 per unit. On February 2, 2014, the company
received an offer from Miller Company for 14,300 units of the product at $28 each.
Miller Company will market the units in a foreign country under its own brand name.
The additional business is not expected to affect the domestic selling price or
quantity of sales of Country Jeans Co. Prepare a differential analysis on whether to
reject (Alternative 1) or accept (Alternative 2) the Miller order. What is the minimum
price per unit that would produce a positive contribution margin? Round your answer
to two decimal places.
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