FINANCIAL ACCOUNTING
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Transcribed Image Text:Chapter 17 Homework
Concentrate
Water
Sugar
Bottles
Flavor changeover
Conversion cost
Total cost transferred to finished goods
Number of cases
Cola
Lemon-Lime
Root Beer
$
per case
per case
Orange
2,500 60,000
50,000
Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor
changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. A production run of a
new flavor is produced after a flavor changeover from the previous flavor. Higher-demand flavors are produced in larger production runs,
while smaller-demand flavors are produced in smaller production runs.
>
Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
Orange
per case
Cola
$4,625 $129,000
1,250
30,000
3,000
72,000
5,500
132,000
3,000
4,800
1,750
24,000
$19,125
$391,800
Lemon-Lime
$105,000
25,000
60,000
110,000
4,000
20,000
$324,000
Root Beer
$7,600
2,000
4,800
8,800
10,000
2,800
$36,000
4,000
per case
Complete the following paragraph regarding the comparative cost information and results from above.
The cost per case of
is significantly above the cost per case of the other three flavors. Based on an analysis of the
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