Solution for Cost Accounting: Foundations and Evolutions 8th Edition Chapter 4, Problem 16

by Michael R. Kinney, Cecily A. Raiborn
358 Solutions 19 Chapters 53448 Studied ISBN: 9781439044612 Accounting 5 (1)

Chapter 4, Problem Exercise 16 : Exercise 4-30   ...

Exercise 4-30











Insert amounts in the gray-shaded cells of columns C, E, and G.


If an answer is incorrect the word "Wrong" will appear.










Cost of finding best suppliers





$   3,75,000


Number of phone calls made







Cost per phone call














Cost to issue purchase orders




$   1,87,500


Number of purchase orders issued






Cost per purchase order














Cost to review receiving reports




$   1,68,750


Number of receiving reports







Cost per receiving report





















Cost Assignment of Special Order:









Phone calls made



$   1.00




Purchase orders issued



$   4.00




Receiving reports reviewed



$   6.00




Total cost assigned





















Purchasing Department cost assigned






    to special order





$           575


Number of units







Purchasing Department cost per unit






    (rounded to nearest cent)





















Total costs





$   7,31,250


Total number of calls







Cost per call (rate)







Number of calls for special order






Cost assigned to special order




$             -  










Step-By-Step Solution

Chapter 4, Problem Exercise 16

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