## 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 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. a. Cost of finding best suppliers \$   3,75,000 Number of phone calls made 3,75,000 Cost per phone call Cost to issue purchase orders \$   1,87,500 Number of purchase orders issued 46,875 Cost per purchase order Cost to review receiving reports \$   1,68,750 Number of receiving reports 28,125 Cost per receiving report Cost Assignment of Special Order: Units x Rate Phone calls made 225 \$   1.00 Wrong Purchase orders issued 50 \$   4.00 Wrong Receiving reports reviewed 25 \$   6.00 Wrong Total cost assigned b. Purchasing Department cost assigned to special order \$           575 Number of units 100 Purchasing Department cost per unit (rounded to nearest cent) c. Total costs \$   7,31,250 Total number of calls 3,75,000 Cost per call (rate) Number of calls for special order 225 Cost assigned to special order \$             -

## Step-By-Step Solution

#### Chapter 4, Problem Exercise 16

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