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
icon
Related questions
Question
Please do not give image format
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.
Ewers
19, 800
990
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 Required B
Bramford
36, 900
4, 428
Complete this question by entering your answers in the tabs below.
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
Transcribed Image Text: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. Ewers 19, 800 990 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 Required B Bramford 36, 900 4, 428 Complete this question by entering your answers in the tabs below. 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 A Required B
Which supplier would you recommend that the purchasing manager select?
Which supplier would you recommend that the purchasing manager select?
Transcribed Image Text:Required A Required B Which supplier would you recommend that the purchasing manager select? Which supplier would you recommend that the purchasing manager select?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Strengths and Weaknesses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Business Its Legal Ethical & Global Environment
Business Its Legal Ethical & Global Environment
Accounting
ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage