CoursHeroTranscribedText: EYPIS-l Khan Products Company uses a job order mat system. For a number of...
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CoursHeroTranscribedText: EYPIS-l Khan Products Company uses a job order mat system. For a number of months, there has been an ongoing rift between the sales department and the production department concern- ing a spacial-order product, TC-l. TC-l is a seasonal product that is manufactured in batches of 1," units. TC-l is sold at cost plus a markup of 40% of cost. The sales department is unhappy because uctuating unit production costs signicantly at- fect selling prices Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC-l. The production department maintains that each job order must be fully coated on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution to the problem is for the sales department to increase sales in the slack periods. Andrea Parley, president of the company, asks you as the company accountant to collect quan- ter'ly data for the past year on TC-l. From the cost accounting system, you accumulate the fol- lowing production quantity and cost data
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