Required information [The following information applies to the questions displayed below.] Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once the fabric is received, it is inspected to ensure that it is suitable for manufacturing purposes. Ellery disposes of fabric that is deemed unsuitable. The controller at Ellery collected the following information on purchases for the past quarter: Total purchases (yards) Fabric discarded (yards) The purchasing manager has just received bids on an order for 800 yards of fabric from both Ewers and Bramford. Ewers bid $2,261 and Bramford bid $2,134. Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? 1-b. Which supplier would you recommend that the purchasing manager select? Required A Ewers 19, 800 990 Complete this question by entering your answers in the tabs below. Required B Bramford 36, 900 4, 428 Effective cost per 800 yards Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? Bramford Ewers

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers
Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once the fabric is received, it is inspected to
ensure that it is suitable for manufacturing purposes. Ellery disposes of fabric that is deemed unsuitable.
The controller at Ellery collected the following information on purchases for the past quarter:
Total purchases (yards)
Fabric discarded (yards)
The purchasing manager has just received bids on an order for 800 yards of fabric from both Ewers and Bramford. Ewers
bid $2,261 and Bramford bid $2,134.
Ewers
19, 800
990
Required:
1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What
is the effective cost per 800 yards for both Ewers and Bramford?
1-b. Which supplier would you recommend that the purchasing manager select?
Required A Required B
Bramford
36, 900
4, 428
Complete this question by entering your answers in the tabs below.
Effective cost per 800 yards
Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past.
What is the effective cost per 800 yards for both Ewers and Bramford?
Bramford
Ewers
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once the fabric is received, it is inspected to ensure that it is suitable for manufacturing purposes. Ellery disposes of fabric that is deemed unsuitable. The controller at Ellery collected the following information on purchases for the past quarter: Total purchases (yards) Fabric discarded (yards) The purchasing manager has just received bids on an order for 800 yards of fabric from both Ewers and Bramford. Ewers bid $2,261 and Bramford bid $2,134. Ewers 19, 800 990 Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? 1-b. Which supplier would you recommend that the purchasing manager select? Required A Required B Bramford 36, 900 4, 428 Complete this question by entering your answers in the tabs below. Effective cost per 800 yards Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? Bramford Ewers
Required A Required B
Which supplier would you recommend that the purchasing manager select?
Which supplier would you recommend that the purchasing manager select?
Transcribed Image Text:Required A Required B Which supplier would you recommend that the purchasing manager select? Which supplier would you recommend that the purchasing manager select?
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