Exercise 94 Group No of CDs Price per CD Exercise 94 Bell In

Exercise 9-4

Group

No. of CDs

Price per CD

Exercise 9-4

Bell, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $13,800. Bell will group the CDs into three price categories for resale, as indicated below

Group	No. of CDs	Price per CD
1	200	$7
2	900	13
3	100	20

Determine the cost per CD for each group, using the relative sales value method

Solution:

Group

No. of CDs

Price per CD

Total SP

Relative SP

Cost per CD

200

1400

1,279.47

6.40

900

11700

10,692.72

11.88

100

2000

1,827.81

18.28

15100

13800

Working:

Relative SP

Cost per CD

1400/15100 * 13800

1279.47/200

11700/15100 * 13800

10,692.72/900

2000/15100 * 13800

1827.81/100

Group	No. of CDs	Price per CD	Total SP	Relative SP	Cost per CD
1	200	7	1400	1,279.47	6.40
2	900	13	11700	10,692.72	11.88
3	100	20	2000	1,827.81	18.28
			15100	13800

Exercise 9-4 Group No. of CDs Price per CD Exercise 9-4 Bell, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchas

Exercise 94 Group No of CDs Price per CD Exercise 94 Bell In

Solution

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