Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tulsa Company is a car brake repair and replacement company operating in the after-sales market. Tulsa's purchasing manager uses two suppliers (Stridulo and Fallimento) for

image text in transcribed

Tulsa Company is a car brake repair and replacement company operating in the after-sales market. Tulsa's purchasing manager uses two suppliers (Stridulo and Fallimento) for the source of its passenger car brakes. Data relating to brake discs (Discs) and brake pads (Pads) are given below. I. Activity Costs Activity Adverse buying Supplier returns*** $800,000 100,000 *Extra cost of purchasing from local car dealer because of insufficient delivery of supplier. **Brakes returned because they were not ordered or because they were defective. II. Supplier Data Stridulo Brakes Fallimento Brakes Discs Pads Discs Pads $146.50 Unit purchase price Units purchased Insufficient units $53.75 10,000 $148.75 10,000 2,000 $46.50 15,000 6,000 1,500 2,000 15,000 6,000 1,500 Returned units 500 500 Required: 1. Calculate the activity rates for assigning costs to suppliers. Adverse buying rate per adverse purchase Supplier return rate per return 2. Calculate the total unit purchasing cost for each component for each supplier. Total unit cost Stridulo Brakes Fallimento Brakes Discs Pads

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

Fundamental Accounting Principles

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

20th Edition

1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870

More Books

Students also viewed these Accounting questions