Answer:
It is more profitable to continue processing.
Explanation:
Giving the following information:
Ahngram Corp. has 1,000 cartons of oranges that cost $44 per carton in direct costs and $25.00 per carton in indirect costs and sold for $64 per carton. The oranges can be processed further into orange juice at an additional cost of $21.00 and sold for $114.
First, we need to calculate the income before processing and then the income after processing:
Before processing:
Income= 1,000*(64 - 44 - 25)= -$5,000
After processing:
Income= 1,000*(114 - 69 - 21)= $24,000
It is more profitable to continue processing.
Answer and Explanation:
1. Unit Cost for June = Total Cost/ Equivalent Units of output
= 174,000/75,000
= $2.32 per unit
2. Cost of Ending Work in Progress = Cost per unit * Ending WIP
= 2.32 * 21,600
= $50,112
Cost of goods transferred out = Cost per unit * Units completed
= 2.32 * 53,400
= $123,888
3. By using the Weighted Average method for calculating cost, May costs will also be reflected in the cost figures. In May, the measures to reduce cost had not been implemented so the costs were still higher than anticipated for June. They will therefore pull the June costs upward such that the cost reductions will not show up in June.
This can be overcome by using a method that would reflect the cost of June alone.
Answer:
A firm is deciding how much of its equipment to sell so that it can reduce its monthly loan payments for equipment.
The best alternative given up when we make a decision is called the <u>Opportunity Cost</u> of that decision.
<h3>
What is an Opportunity Cost?</h3>
Opportunity cost is the forgone alternative when a decision has to be made.
For instance, if a meal has to be skipped to afford the payment of a book, then the opportunity cost or foregone alternative is the meal. Therefore, the correct answer is opportunity cost.
Learn more about the opportunity cost here:
brainly.com/question/1549591
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You will get fired form your job.
