<em>You tell them it's too late to exchange since it already expired.</em>
Answer:
Incremental cost= $61,875
Explanation:
Giving the following information:
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit
We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.
Make in house:
Cost= 49,500*5.15= $254,925
Buy:
Cost= 49,500*3.90= $193,050
Incremental cost= 254,925 - 193,050= $61,875
Answer:
The amount should be recorded as interest expense in the journal entry made each six months is $6,000
Explanation:
In order to calculate the amount should be recorded as interest expense in the journal entry made each six months, we have to calculate the interest annually with the following formula according to the given data:
interest annually=Issue Price of Bond×rate of interest
=$200,000
×6%
=$12,000
Therefore, the interest semiannually would be calculated as follows:
interest semiannually=$12,000/2=$6,000
The amount should be recorded as interest expense in the journal entry made each six months is $6,000
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
$4,000
Explanation:
The operating activities records daily activities of a business entity transactions such as depreciation expense, loss or profit on sale of long term assets, change in working capital etc.
With regards to the above scenario, there is a loss of $4,000 on the sale of equipment whilst same was recorded under the operating activity section as positive.
It is to be noted that the sale and equipment of an equipment falls under investing activity section hence shod be recorded therein as such, reason it was not considered here.
