Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory$10,800 Direct labor used 30,600 Beginning work in process inventory 7,200 General and administrative expenses 13,500 Direct materials used 40,500 Ending work in process inventory 9,000 Indirect labor 6,300 Ending finished goods inventory 9,500 Indirect materials 13,500 Depreciation-factory equipment 7,500
A. $102,000.
B. $110,100.
C. $113,700.
D. $100,200.
E. $96,600.
Answer: E
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Bates Golf Supply produces a golf bag that sells for $220. Although the company's production capacity is 5,000 bags per year, only 4,000 bags are currently being produced and sold. The production costs for 4,000 bags are as follows:
Golf Mart Stores has offered to purchase 1,000 golf bags as a one-time special purchase at a price of $170 per bag.Required:1) Prepare a quantitative analysis that indicates whether the special order should be accepted.2) What qualitative factors should be considered in this special order decision?
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