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Confectioners, a Chain of Candy Stores, Purchases Its Candy in Bulk

question 101

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Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers.For a recent shipment, the company paid $3,000 and received 8,500 pieces of candy that are allocated among three groups.Group 1 consists of 2,500 pieces that are expected to sell for $0.25 each.Group 2 consists of 5,500 pieces that are expected to sell for 0.60 each.Group 3 consists of 500 pieces that are expected to sell for $1.20 each.Using the relative sales value method, what is the cost per item in group 1?


Definitions:

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a given period, including materials, labor, and overhead expenses.

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