Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Effective Cost Per Carton Milan Dundee

Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Effective Cost Per Carton Milan Dundee

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Hello question is attached, thanks. 

**Hult Games Supplier Analysis** 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, leading to contractual penalties that require Hult to reimburse a portion of the purchase price to the customer. **Purchasing and Delivery Data:** During the past quarter, the purchasing and delivery data for the two suppliers showed the following: - **Milan:** - Total purchases (cartons): 100,000 - Average purchase price (per carton): $20.00 - Number of deliveries: 80 - Percentage of late deliveries: 25% - **Dundee:** - Total purchases (cartons): 60,000 - Average purchase price (per carton): $22.00 - Number of deliveries: 20 - Percentage of late deliveries: 10% - **Total:** - Total purchases (cartons): 160,000 - Average purchase price (per carton): $20.75 - Number of deliveries: 100 - Percentage of late deliveries: 22% The Accounting Department recorded $496,000 as the cost of late deliveries to customers. **Required Analysis:** Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. Calculate the effective price for components from the two companies when late deliveries are considered. Do not round intermediate calculations. Round your answers to two decimal places. **Effective Cost Per Carton:** - **Milan:** - To be calculated. - **Dundee:** - To be calculated.
Transcribed Image Text:**Hult Games Supplier Analysis** 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, leading to contractual penalties that require Hult to reimburse a portion of the purchase price to the customer. **Purchasing and Delivery Data:** During the past quarter, the purchasing and delivery data for the two suppliers showed the following: - **Milan:** - Total purchases (cartons): 100,000 - Average purchase price (per carton): $20.00 - Number of deliveries: 80 - Percentage of late deliveries: 25% - **Dundee:** - Total purchases (cartons): 60,000 - Average purchase price (per carton): $22.00 - Number of deliveries: 20 - Percentage of late deliveries: 10% - **Total:** - Total purchases (cartons): 160,000 - Average purchase price (per carton): $20.75 - Number of deliveries: 100 - Percentage of late deliveries: 22% The Accounting Department recorded $496,000 as the cost of late deliveries to customers. **Required Analysis:** Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. Calculate the effective price for components from the two companies when late deliveries are considered. Do not round intermediate calculations. Round your answers to two decimal places. **Effective Cost Per Carton:** - **Milan:** - To be calculated. - **Dundee:** - To be calculated.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Initial Public Offering (IPO)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS