Mm co. uses corrugated cardboard to ship its product - id4168550 от ana2896 02.10.2021 01:06

Question

Business: Mm co. uses corrugated cardboard to ship its product to customers. management believes it has found a more efficientway to package its products and use less cardboard. this new approach will reduce shipping costs from $10.00 pershipment to $9.25 per shipment. lfthe company forecasts 1,200 shipments this year, what amount of total direct materialscosts would appear on the shipping department’s flexible budget? how much is this sustainability improvement predictedto save in direct materials costs

ana2896 · Accepted Answer

(A) Inventory increases by 595,000(B) Inventory decreases by 14,500(C) no effectInventory balance: 595,000 - 14,500 = 580,500Explanation:We are asked for Readers Corner(A) Reades purchase at 595,000 so we use this value. Reader has no informaiton about the cost of New Books.(B) there is an allowance for 14,500 the inventory account will decrease immediately as it works with perpetual invnetory method(C) no effect. The payment do not alter the invnetory valuation....

Mm co. uses corrugated cardboard to ship its product to customers. management believes

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