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Author Question: Lewis S. Gray Inc. manufactures a part for use in its production of art deco furniture. When 10,000 ... (Read 82 times)

clmills979

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on: Mar 6, 2021

Question 1

How does a manager go about choosing which of three products to produce and sell when each product uses a single machine with a limited capacity?

Question 2

Lewis S. Gray Inc. manufactures a part for use in its production of art deco furniture. When 10,000 items are produced, the costs per unit are: 

Direct materials$ 15
Direct manufacturing labor60
Variable manufacturing overhead25
Fixed manufacturing overhead32
Total$132

Colonial Accents Company has offered to sell to Lewis S. Gray 10,000 units of the part for $125 per unit. The plant facilities could be used to manufacture another part at a savings of $180,000 if Lewis S. Gray accepts the supplier's offer. In addition, $30 per unit of fixed manufacturing overhead on the original part would be eliminated. 

Required: 
a.What is the relevant per unit cost for the original part?
b.Which alternative is best for Lewis S. Gray Company? By how much? 
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by clmills979 on Mar 6, 2021

okolip

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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clmills979

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

tkempin

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Reply 3 on: Yesterday
Excellent

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