Required information[The following information applies to the questions displayed below.]Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. Ifthe components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractualpenalties that call for Hult to reimburse a portion of the purchase price to the customer.During the past quarter, the purchasing and delivery data for the two suppliers showed the following.Milan Dundee126,000 54,00022.00 $ 248020Total180,00022.6010025%10%Total purchases (cartons)Average purchase price (per carton)Number of deliveriesPercentage of late deliveries$$Effective CostPer Carton22%The Accounting Department recorded $553,500 as the cost of late deliveries to customers.Required:Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as inthe past. What is the effective price for components from the two companies when late deliveries are considered? (Do notround intermediate calculations. Round your answers to 2 decimal places.)

Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Total Dundee 126,000 54,000 $22.00 $ 24 180,000 $ 22.60 20 100 10% Total purchases (cartons) Average purchase price (per carton) Number of deliveries Percentage of late deliveries 80 25% 22% The Accounting Department recorded $553,500 as the cost of late deliveries to customers. Effective Cost Per Carton equired: ssume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as e past. What is the effective price for components from the two companies when late deliveries are considered? (Do not ound intermediate calculations. Round your answers to 2 decimal places.)

Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Total Dundee 126,000 54,000 $22.00 $ 24 180,000 $ 22.60 20 100 10% Total purchases (cartons) Average purchase price (per carton) Number of deliveries Percentage of late deliveries 80 25% 22% The Accounting Department recorded $553,500 as the cost of late deliveries to customers. Effective Cost Per Carton equired: ssume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as e past. What is the effective price for components from the two companies when late deliveries are considered? (Do not ound intermediate calculations. Round your answers to 2 decimal places.)

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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