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2 13:06 ok ht ! Required information EX 14-37 (Algo) Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental's
2 13:06 ok ht ! Required information EX 14-37 (Algo) Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental's special order requires 1,300 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 9,900 kilograms at a book value of 9.90 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 10.50 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 10.10 p when normal restocking takes place. Any order of genatope must be in the amount of 5,600 kilograms. EX 14-37 (Algo) Part 2: Identify the relevance of each of the figures given. 2. Identify the relevance of each of the figures given in the exercise in terms of making the special-order decision. (a) Book value of inventory (b) Quantity to be used in the special order (c) Predicted cost if next order is placed early (d) Predicted cost if next order is placed on time
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