Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help ASAP!!!! Homework due at 11pm Activity-Based Supplier Costing Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in

Please help ASAP!!!! Homework due at 11pmimage text in transcribedimage 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 30Y. Consider two activities: 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 failed the test and it is necessary to replenish component inventories. Activity cost information and other data needed for supplier costing are as follows: I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Costs Testing components $1,200,000 Reordering components 300,000 II. Supplier Data Alpha Electronics La Paz Company 125X 30Y 125X 30Y Unit purchase price $26 $12 $28 $10 Units purchased 120,000 74,300 15,000 15,000 II. Supplier Data La Paz Company Alpha Electronics 125X 30Y 125X 30Y Unit purchase price $10 $26 $12 $28 Units purchased 15,000 120,000 74,300 15,000 Failed tests 1,800 780 10 10 Number of reorders 60 40 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: $ 14.31 30.31 18.42 32.46

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_2

Step: 3

blur-text-image_3

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

NHS Audit Committee Handbook Practical Guides

Authors: Governance And Audit Committee

3rd Edition

1904624839, 978-1904624837

More Books

Students also viewed these Accounting questions

Question

Discuss several demand forecasting issues.

Answered: 1 week ago