Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
15th Edition
ISBN: 9780133781106
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 19, Problem 19.36P

1.

To determine

Decision making on purchase of gray cloth.

Given information:

Additional rolls purchased are 5,000 rolls.

Selling price per roll is $1,800 per roll.

Cost per roll of gray cloth is $1,800.

Variable cost of printing per roll is $200.

2.

To determine

Decision making on implementation of scrap reduction program.

Given information:

Output of weaving department is 9,500 rolls.

Reduction in scrap is 4%.

Selling price per roll is $2,500 per roll.

3.

To determine

Decision making on implementation of scrap reduction program.

Given information:

Reduction in production defects is 2%.

Scrap in printing department is 10%.

Incremental cost of scrap deduction is $700,000.

Variable cost of printing per roll is $300.

Selling price per roll is $2,800 per roll.

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