Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity-Based Supplier Costing Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones Component

image text in transcribed
image text in transcribed
Activity-Based Supplier Costing Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones Component 125X and Component so Contider two Saites: testing components and reordering components. After the two components are inserted, testing is done to ensure that the two components in the phones are working properly Reordering occurs because one or both of the components have falled the test and it is necessary to replenish component inventories Activity cost information and other data needed for supplier costing are as follows: 1. Activity Couts Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 11. Supplier Data La Paz Company Alpha Electronics 125% JOY 125x 510 $26 $12 $28 Unit purchase price Units purchased Folled tests 120,000 63,300 15,000 15,000 70 10 10 1,000 60 40 0 0 Number of reorders Required: Determine the cost of each supplier by using ANC Round Test and order rates to the nearest dollar, and into the nearestent Alpha Electronics La Par Company Reordering occurs because one or both of the components have falled the test and it is necessary to replenish component inventories. Activity cos supplier costing are as follows: 1. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components Reordering components $1,200,000 300,000 II. Supplier Data Alpha Electronics La Paz Company 125X 30Y 125X 30Y Unit purchase price $10 $26 $12 $28 Units purchased 120,000 83,300 15,000 15,000 Failed tests 1,000 780 10 10 Number of reorders 60 40 0 0 Required: Determine the cost of each supplier by using ABC. Round Test and Reorder rates to the nearest dollar, and final answers to the nearest cent. Alpha Electronics La Paz Company 125x 30Y 125x 30Y Unit cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Expert Fraud Investigation A Step By Step Guide

Authors: Tracy Coenen

1st Edition

0470387963, 978-0470387962

More Books

Students also viewed these Accounting questions