Required information [The following information applies to the questions displayed below.] Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once the fabric is received, it is inspected to ensure that it is suitable for manufacturing purposes. Ellery disposes of fabric that is deemed unsuitable. The controller at Ellery collected the following information on purchases for the past quarter: Total purchases (yards) Fabric discarded (yards) The purchasing manager has just received bids on an order for 800 yards of fabric from both Ewers and Bramford. Ewers bid $2,261 and Bramford bid $2,134. Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? 1-b. Which supplier would you recommend that the purchasing manager select? Required A Ewers 19, 800 990 Complete this question by entering your answers in the tabs below. Required B Bramford 36, 900 4, 428 Effective cost per 800 yards Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? Bramford Ewers
Required information [The following information applies to the questions displayed below.] Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once the fabric is received, it is inspected to ensure that it is suitable for manufacturing purposes. Ellery disposes of fabric that is deemed unsuitable. The controller at Ellery collected the following information on purchases for the past quarter: Total purchases (yards) Fabric discarded (yards) The purchasing manager has just received bids on an order for 800 yards of fabric from both Ewers and Bramford. Ewers bid $2,261 and Bramford bid $2,134. Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? 1-b. Which supplier would you recommend that the purchasing manager select? Required A Ewers 19, 800 990 Complete this question by entering your answers in the tabs below. Required B Bramford 36, 900 4, 428 Effective cost per 800 yards Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per 800 yards for both Ewers and Bramford? Bramford Ewers
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 7DQ
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