Cool Springs Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending

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Cool Springs Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. Below is a simplified Bottling Department cost of production report separating the costs of bottling the four flavors.

A Orange $ 3,700 1,000 2,000 Lemon-Lime Root Beer Cola $ 84,000 2 Concentrate 3 Water 4 Sugar 5 Bottles 6 Flavor changeo

Beginning and ending work in process inventories are negligible, so are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Prepare a memo to the production manager analyzing this comparative cost information. In your memo, provide recommendations for further action, along with supporting schedules showing the total cost per case and cost per case by cost element.

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Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

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