Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says the...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648fe78a2fe3_7686648fe783a37d.jpg)
Transcribed Image Text:
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says the unit product cost for this bracelet is $268.00, as shown below: Direct materials Direct labor $149 83 Manufacturing overhead Unit product cost 36 $268 A wedding party has approached Imperial Jewelers about buying 25 gold bracelets for the discounted price of $366.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $12. Imperial Jewelers would have to buy a special tool for $468 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $13.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the wedding party's special order? Financial advantage Required 1 Required 2 > Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says the unit product cost for this bracelet is $268.00, as shown below: Direct materials Direct labor $149 83 Manufacturing overhead Unit product cost 36 $268 A wedding party has approached Imperial Jewelers about buying 25 gold bracelets for the discounted price of $366.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $12. Imperial Jewelers would have to buy a special tool for $468 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $13.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the wedding party's special order? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the wedding party's special order? Financial advantage Required 1 Required 2 >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
15 1 points Exercise 13-4 (Algo) Special Order Decision [LO13-4] Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unit product cost...
-
1 Option. Have you ever found yourself salivating after a commercial for your favorite food? What was the UCS? The CS? The CR? 2 Option. What was the CS in the case of Little Albert? a Option. rat b...
-
If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are a. complements. b. inferior goods. c. normal goods. d. none of...
-
Strickland Co. currently charges manufacturing over-head costs to products using machine hours. However, company management believes that the use of ABC would provide more realistic cost estimates...
-
Contingent Liabilities Omega Company is involved in two unrelated lawsuits, one as the plaintiff and one as the defendant. As a result of these two lawsuits, the company has a contingent asset and a...
-
Brightland Tech must develop an aggregate plan to meet the following 5 months of demand: Brightland has 50 units in inventory at this time, and the company intends to produce 150 units a month for...
-
When multiple inputs of labor or material resources are required for production, the labor efficiency variance and the material quantity variance can each be analyzed into two separate components...
-
The chief cost accountant for Sassy Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning June 1 would be $ 97,500, and total direct...
-
Score: 15 4) Checking on ticket sales, we find that we had 4,400 fans when the price was $16, and 6,500 when the price was $9. a) Construct a linear Demand model, D(p) [p = price], for tickets b)...
-
When using histograms to compRefer to Data Set 21 in Appendix B for the axial loads of aluminum cans that are 0.0111 in. thick. Theare two data sets, it is sometimes difficult to make comparisons by
-
You are auditing a company that operates a computer controlled warehouse. There is no human entry to the warehouse except when essential maintenance is carried out. Products are taken into the store...
-
Consider the following statements and explain why they may be true or false: (a) The omission of a short-term liability from the balance sheet will result in the acid test ratio showing that the...
-
Consider the following statements and explain why they may be true or false: (a) Auditors are responsible for detecting fraud in a companys financial statements. (b) The implementation of a sound...
-
Independent internal verification of inventory (i.e., proper segregation of duties) occurs when employees who a. Issue raw materials obtain materials requisitions for each issue and prepare daily...
-
Consider the following statements and explain why they may be true or false: (a) The audit expectations gap has arisen since the 1960s. (b) The reasonableness component of the audit expectations gap...
-
Based on the cash flow shown over 10 years for three projects, which should be selected using the concept of IRR and Delta IRR? MARR 10% Year Project T Project W Project X 0 $ (26,500.00)...
-
Which of the following statements is false? a. Capital leases are not commonly reported in a Capital Projects Fund. b. A governmental entity may report a Capital Project Fund in one year but not the...
-
Use the data in P 7 for this problem. Required 1. Prepare entries in journal form (refer to the review problem) to record the transactions, assuming use of the periodic inventory system. 2. User...
-
Books Unlimited is a well-established chain of 20 bookstores in western Ohio. In recent years the company has grown rapidly, adding five new stores in regional malls. The manager of each store...
-
Roman Sound Source, Inc., has operated in Kansas for 30 years. The company has always prided itself on providing individual attention to its customers. It carries a large inventory so it can offer a...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App