c. What is the indifference point of making or purchasing the part? :Show proof. d. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 30,000 units requirements?
Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…
A: When an entity called parent entity acquired more than 50 percent shares of another company,then…
Q: On June 1, Bramble Inc. issues 3,600 shares of no-par common stock at a cash price of $9 per share.…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: On January 1, 2023, Sheridan Corp. issued $1.155 million of five-year, zero-interest-bearing notes…
A: Solution : Journal entry : Date Account titles & explanation Debit $ Credit $ January…
Q: The following transactions occur for the Wolfpack Shoe Company during the month of June: Provide…
A: In this question, we have to post the given transactions to T-accounts. For that , we have first…
Q: ABC Company's budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 units…
A: Expense budget is the statement which is prepared to estimate the expenses of the entity. It include…
Q: Computing Bad Debt Expense from Transaction Data A company estimates uncollectible accounts using…
A: Bad debt expense :— It is the amount of receivable that are uncollectible from customer. Bad debt…
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the…
A: Preparation of flexible budget performance showing revenue and spending variance and activity…
Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…
A: Acquisition is the process which is followed by a firm when it acquired other company and hold all…
Q: Periodic Inventory by Three Methods The units of an item available for sale during the year were as…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: Wildhorse Engineering Contractors incurred employee payroll costs of $43,920 ($34,160 direct and…
A: Recording of journal entries is the foremost step in the process of book-keeping. These are recorded…
Q: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: bluow to 10a fina oce 101 01.03 bisq 28 Roma Skincare sibem anti ins Operating Income Statement June…
A: IMPORTANT NOTE: Since you have posted a question with multiple sub parts, we will provide the…
Q: Equipment purchased on 06/01/22 for $560K (U/L = 5 years, S/V = 0, Straight-line depreciation). Sold…
A: Gain or loss on non-current asset means the amount earned or incurred on the sale of the asset.…
Q: On May 31, 2016, the Arlene Corporation adopted aplan to sell Its cosmetics line fo business,…
A: INFORMATION:- This question involves the accounting treatment of a discontinued component of a…
Q: A firm has net sales of $6,000, cash expenses (including taxes) of $2,800, and depreciation of…
A: The correct option with proper explanation are as follows .Calculation of cashflow from operation…
Q: show solution for letters A and b only
A: Calculation of relevant cost and advantages of purchasing are as follows As per your requirement…
Q: TX, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that TX purchased…
A: Goodwill is an intangible asset that represents the excess of the purchase price of a business over…
Q: Under U.S. GAAP research costs and development costs (when product technologically and economically…
A: Specifically, development costs can be capitalized if they meet all of the following criteria: The…
Q: ces Required information [The following information applies to the questions displayed below.)…
A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…
Q: On May 1, Sandhill Company had 410 units of inventory on hand, at a cost of $4.00 each. The company…
A: Note: Assume FIFO method is used In order to determine the gross profit, the cost of products sold…
Q: How do accounting standards and regulations (such as GAAP or IFRS) impact financial reporting? What…
A: Accounting standards and regulations are a set of guidelines and rules that govern the accounting…
Q: The ledger of Kinsler Company has the following work in process account. WORK IN PROCESS-PAINTING…
A: Under process costing equivalent units calculated. Equivalent units can be calculated by using first…
Q: Hi! I am having trouble doing my accounting homework, coudl you help me complete it. The account…
A: Premium on Bonds Payable=Bond Issue Value-Bond Face Value
Q: Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single…
A: Lets understand the basics. Budgeted Income statement: The income statement shows expenses and…
Q: You are a management accountant of EON and Brothers Ltd., a manufacturing company that produces two…
A: Activity-based costing (ABC) is a costing technique that allocates costs based on the activities…
Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…
A: The answer for the multiple choice question and relevant working are presented hereunder : Under the…
Q: the attachement to answer the following Cash outflows in March for purchases will be: a) $240…
A: Gross margin is very important in the business and gross margins can be obtained by deduction of…
Q: Problem 9-26 (Algo) Comprehensive Variance Analysis [LO9-4, LO9-5, LO9-6] Highland Company produces…
A: You have asked multiple sub-parts we can solve only first three sub-parts for you if you want to get…
Q: Date Activities Units Acquired at Cost Units Sold at Retail March 1 Beginning inventory 120 units @…
A: To compute the gross profit earned by the company for each of the four costing methods, we need to…
Q: The inventory records for Radford Company reflected the following Beginning inventory on May 1 1,600…
A: Cost of goods sold is the amount of cost which is incurred on the making of the goods. It includes…
Q: The following information is available for Swifty Corporation for the year ended December 31, 2022:…
A: The question is based on the concept of Financial Accounting. Income Statement is the statement that…
Q: Vail Company recorded the following transactions during November. Date November 5 November 10…
A: ACCOUNT RECEIVABLE Account Receivable is a amount receivable from the Customers. Account…
Q: Splish Co. sells $404,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…
A: As per the given information: Par value/Face value of bonds = $404,000Coupon rate(per annum)=…
Q: Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts…
A: Activity Variance :— It is the difference between flexible budget and planning budget. Flexible…
Q: A wealthy alumnae donates $500,000 in marketable securities to her alma mater to establish a…
A: The scenario presented involves a wealthy alumna who donates $500,000 in marketable securities to…
Q: If a firm has tangible fixed assets of $52 million, accumulated depreciation of $40 million, and…
A: (i) The estimated remaining asset life can be calculated as follows: Estimated Remaining Asset Life…
Q: Marshall- • Graduated college two years ago, and now lives a solidly middle-income lifestyle Paying…
A: Credit cards are a type of payment card that allow individuals to borrow money up to a certain…
Q: Basic earnings per share for 2006 was: a) $3.08 b) $3.50 c) $3.16 d) $3.00
A: The term basic earnings per share refers to amount which is determined through dividing the net…
Q: Prepare a flexible manufacturing budget
A: A manufacturing budget is a collection of three budgets that estimate the cost of direct materials,…
Q: Williams Incorporated produces a single product, a part used in the manufacture of automobile…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Falkenberg Company uses the periodic method. They had the following inventory transactions…
A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…
Q: The ABC Company produced specialized software for a customer. It delivered the software on 1/1/2023.…
A: Since the question has multiple sub-parts, as per the guidelines only the first three sub-parts will…
Q: [The following information applies to the questions displayed below.] Warnerwoods Company uses a…
A: Perpetual inventory system: The system of material control on a continuous basis is while the…
Q: On January 1, 2023, Sheffield Corporation purchased 20% of the common shares of Martz Limited for…
A: Investment refers to the asset which is acquired by the investor for the motive of generating income…
Q: MYY (ProShares Short Midcap 400) SH (ProShares Short S&P 500) REW (ProShares UltraShort Technology)…
A: Total loss or profit on the investment depends on the stock in the portfolio and weight of stocks in…
Q: Which of the following is not a factor in producing earnings forecasts?
A: Factors that are typically considered when producing earnings forecasts include the separation of…
Q: Which of the following is not included in the definition of earnings persistence?
A: The magnitude of the earnings is not included in the definition of earnings persistence. Earnings…
Q: As a fresh graduate from the school of business at Mulungushi University, you have just been…
A: (a) Treatment of transactions: Mr. Kyambalesa withdrew goods from his business for domestic use…
Q: Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period…
A: Ans. For understanding this case, we will look into the T form account of Accounts receivable.
Q: The auto repair shop of Quality Motor Company uses standards to control the labor time and labor…
A: Labor spending variance is the difference between the actual labor cost and standard labor cost.…
stuck on letter c and d pls show complete solution tnx
Step by step
Solved in 3 steps
- Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring 250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can each be sold at the split-off point in a semifinished state or, alternatively, processed further. Additional data about the two products are as follows: An assistant in the companys cost accounting department was overheard saying ...that when both joint and separable costs are considered, the firm has no business processing either product beyond the split-off point. The extra revenue is simply not worth the effort. Which of the following strategies should be recommended for Oakes?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?