Entries by Hannah Wangui

Our company manufactures a component used in the production of its products. Our costs to manufacture the part include direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead, $15 per unit; and fixed manufacturing overhead, $12 per unit. A supplier has offered to sell us the part for $65 per unit. If our company chooses to outsource, the fixed costs could be reduced by 55%. We would have no other use for the facilities currently employed in making the component. What would be the effect if our company decides to outsource? The effect on operating income is $0. We would save $1.60 per unit. Costs would increase by $1.60 per unit. We would save $0.40 per unit. 2.Our company produces a product that is currently sold for $50 per unit. We are considering processing it further into an upgraded version of the current product. If we do so, we can sell the product for $60, we will incur additional costs of $85,000, and we can sell 8,000 units. Which of the following is true? Sell now at $50 since doing so will maximize operating income. Process further because operating income will increase by $5,000. Process further because operating income will increase by $7,500. Process further because operating income will increase by $8,000

August 13, 2019 in /by

Our company manufactures a c Our company manufactures a component used in the production of its products. Our costs to manufacture the part include direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead, $15 per unit; and fixed manufacturing overhead, $12 per unit. A supplier has offered to sell us the part […]

 

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Question Differential analysis is a common method used when making which decisions? long-term capital project decisions short-term business decisions sunk cost decisions long-term business decisio

August 13, 2019 in /by

Question Differential analysis is a common method used when making which decisions?long-term capital project decisions short-term business decisions sunk cost decisions long-term business decisio   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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.Using the information below for our company; determine the cost of goods manufactured during the current year: Direct materials used$5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000 A. $12,000. B. $16,100. C. $17,100. D. $18,100. E. $13,600. 2.Using the information below, calculate net income for the period: Beginning Raw Materials Inventory $25,000 Ending Raw Materials Inventory 30,000 Beginning Work in Process Inventory 55,000 Ending Work in Process Inventory 64,000 Beginning Finished Goods Inventory 80,000 Ending Finished Goods Inventory 67,000 Cost of Goods Sold for the period 540,000 Sales revenues for the for the period 1,254,000 Operating expenses for the period 232,000 a. $714,000. b. $482,000. c. $1,022,000. d. $187,000. e. $727,000. 3.Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 20,000 units would be: a. $99,000. b. $90,000. c. $66,000. d. $30,000. e. $150,000. 4.A corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is: a.Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000. b.Debit Common Dividends Payable $4,000; credit Cash $4,000. c.Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500. d.Debit Common Dividends Payable $4,500; credit Cash $4,500. e.Debit Retained Earnings $10,000; credit Common Dividends Payabl

August 13, 2019 in /by

.Using the information below for our company; determine the cost of goods manufactured during the current year: Direct materials used$5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000 A. $12,000. B. $16,100. C. $17,100. D. $18,100. E. $13,600. 2.Using the information below, calculate net income for […]

 

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August 13, 2019 in /by

for this problem i am on. they are 8% in the depreciation of the building. Where does the 8% come from. I dont understand on the formula page they take the 160,000 * 8% * 1/12. the 1/12 makes seance because it is only for the month of may, but i am confused on where […]

 

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