Manufacturing cost data for Banta Company are presented below. Option A Option B 85,500 (a)...

 

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Manufacturing cost data for Banta Company are presented below. Option A Option B €85,500 € (a) € 47,000 €46,000 € 46,500 €175,575 (b) €197,075 Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in Process 12/31/20 Cost of goods manufactured . . (c) €162,844 . €45,500 (d) € 21,500 (e) €35,231 (f) Required: (60%) (40%) a) Compute the missing amounts for each letter (a) through (i). b) Banta Company must choose between options A, B and C. Evaluate the three options and determine which one is in the best interest of Banta Company. Explain your reasoning. The options differ as follows: Option A uses moderately priced materials from a supplier that usually has the quantities needed by Banta. Option B uses high quality materials that are readily available from a local supplier. Labor and manufacturing costs can be reduced slightly since fewer items fail quality tests during production. Option C uses slight significantly less expensive materials from a local supplier. These lower quality materials result in higher labor and manufacturing overhead costs. Option C €78,050 (9) €47.750 €178.375 (h) €199,875 €35,751 01 Manufacturing cost data for Banta Company are presented below. Option A Option B €85,500 € (a) € 47,000 €46,000 € 46,500 €175,575 (b) €197,075 Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Work in process 1/1/20 Total cost of work in process Work in Process 12/31/20 Cost of goods manufactured . . (c) €162,844 . €45,500 (d) € 21,500 (e) €35,231 (f) Required: (60%) (40%) a) Compute the missing amounts for each letter (a) through (i). b) Banta Company must choose between options A, B and C. Evaluate the three options and determine which one is in the best interest of Banta Company. Explain your reasoning. The options differ as follows: Option A uses moderately priced materials from a supplier that usually has the quantities needed by Banta. Option B uses high quality materials that are readily available from a local supplier. Labor and manufacturing costs can be reduced slightly since fewer items fail quality tests during production. Option C uses slight significantly less expensive materials from a local supplier. These lower quality materials result in higher labor and manufacturing overhead costs. Option C €78,050 (9) €47.750 €178.375 (h) €199,875 €35,751 01

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Answer to a Option A Option B Option C Direct material used... View the full answer