Bell, Inc. buys 1,400 computer game CDs from a distributor who is discontinuing

Question

Bell, Inc. buys 1,400 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $11,900. Bell will group the CDs into three price categories for resale, as indicated below

Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes and round final answers to 2 decimal places, e.g. 5.85.

GROUP COST PER CD

1 $________

2 $_______

3 $______

PLEASE SHOW UR WORK

Explanation / Answer

Group No of CD's Price per CD Total price % Sales Value Allocation of Cost Cost Per CD A B C = A X B D = C/16000 E = 11900 X D F = E/A 1                  200                      6               1,200 7.50%           892.50            4.46 2              1,000                   13             13,000 81.25%        9,668.75            9.67 3                  200                      9               1,800 11.25%        1,338.75            6.69 Total              1,400             16,000     11,900.00

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