Calculation of ending cost of inventory.
The company has an offer from a wholesaler to purchase the part for $31 per unit. If the company decides to accept the offer the cost for this part will increase or decrease by__ per unit?
Hint: Cost of ending inventory $172,286
Calculation of cost per unit
The Walter Jewelry Company produces a bracelet which normally sells for $79.95. The company produces 1,500 units annually but has the capacity to produce 2,000 units. A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations. Current costs for the bracelet are as follows:
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Direct materials
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$17.00
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Direct labor
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14.50
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Variable overhead
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4.00
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Fixed overhead
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5.00
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Total
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$40.50
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