cost accounting.

File Home Insert Draw Page Layout Formulas Data Review View Help Calibri 10 X Cut Copy Format Painter 11 ' 29 Wrap Text HOA Merge & Center BIU Clipboard Font Alignment D26 fy B D E 1 Information 4 5 6 8 9 The manager at Haywood Manufacturing's materials warehouse has asked you estimate the expected monthly cost to purchase item # 616 (a gonkulator) for each of the next three months. 2 The purchase cost and quantity data for item # 616 over the last nine months is as follows: Month Quantity Purchased Purchase Cost January 2,710 $ 12,675 February 2,810 13,000 March 4,153 17,653 7 April 3,756 15,825 May 2,912 13,125 June 3,387 13,814 10 July 3,622 15,300 11 August 2,298 10,233 12 September 3,562 14,950 13 Haywood Manufacturing projects that the company will have to buy the following amount of 14 gonkulators each month for the rest of the year. 15 Month Quantity Purchased 16 October 3,340 17 November 3,710 18 December 3,040 19 20 Part One-High Low Method Use the high-low method to determine Haywood Manufacturing's expected monthly purchase 21 costs related to item #616 for the remaining three months of the year. 22 23 Quantity Purchased Purchase Cost Oh Cell Corp Haywood Manufacturing Ready Type here to search O E HD Calibri 11 = 29 Wrap Text X Cut [Copy Format Painter CA BIU Merge & Cent Font 5 Alignment Clipboard D26 A B 20 Part One--High Low Method Use the high-low method to determine Haywood Manufacturing's expected monthly purchase 21 costs related to item #616 for the remaining three months of the year. 22 23 Quantity Prurchased Purchase Cost Highest Observation Lowest Observation 26 Difference (Delta) 27 28 Slope (B) 29 Constant (A) 30 31 Expected Purchase Costs for October 32 Expected Purchase Costs for November 33 Expected Purchase Costs for December 34 35 Part Two--Regression Analysis Use regression analysis to determine Hawyood Manufacturing's expected monthly purchase 36 costs for item #616 for the months of October through December. 37 38 Slope (B) 39 Constant (A) 40 41 Expected Purchase Costs for October 42 Expected Purchase Costs for November 43 Expected Purchase Costs for December 44 45 Haywood Manufacturing Cell Corp Ready