Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 10-34 & 10-35 (lo 10-3, 4) hult games

Exercise 10-34 & 10-35 (LO 10-3, 4) Hult Games buys electronic components for manufacturing from...

50.1K

Verified Solution

Question

Accounting

Exercise 10-34 & 10-35 (LO 10-3, 4)

Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer.

During the past quarter, the purchasing and delivery data for the two suppliers showed the following:

Milan Dundee Total
Total Purchases (Cartons) 119000 51000 170000
Average purchase price (per carton) 20 22 20.60
Number of deliveries 80 20 100
Percentage of late deliveries 25% 10%

22%

The Accounting Department recorded $487,900 as the cost of late deliveries to customers

Required:

Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

effective cost per carton
Milan
Dundee

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students