Which of the following best illustrates deciding how to produce a specific product?

According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of J

aksik [14]

Answer:

$0.873

Explanation:

Limber Company

Calculation of cost per equivalent unit for conversion costs for the month:

Units transferred:

Begining Work in process 18,000

Add Units started into production during the month 81,000

Less Ending Work in process (17,000)

Units completed and transferred out during the month 82,000

The Equivalent units of production

Conversion

Transferred to next department 82,000

Add Ending work in process 13,600

( 17,000 units × 80% complete

Equivalent units of production 95,600

Cost per Equivalent Unit

Conversion

Cost of beginning work in process $15,264

Add Cost added during the period 68,208

Total cost $83,472

Equivalent units of production $95,600

Cost per equivalent unit:

Total units/Equivalent units of production

Hence:

$83,472/$95,600

=$0.873

8 0

4 years ago

Suppose transactions costs for a product are zero and the product can be resold. Why might the firms that sell a product charge

Dominik [7]

Answer: The correct answer is "firms offer different levels of service".

Explanation: Firms might charge different prices for the same product even when transactions costs are zero and the product can be resold if the firms offer different levels of service. Because depending on the level and quality of the service offered they may charge a higher or lower price.

4 0

4 years ago

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 69,00

Gnesinka [82]

Answer:

It is cheaper to make the units in-house. The company will save $207,000.

Explanation:

Giving the following formula:

Production:

Direct materials $ 5.00

Direct labor 9.00

Varaible overhead= 10 - 8= $2

Total fixed overhead= (10*0.8)*69,000= $621,000

Direct materials and direct labor are 100% variable.

Overhead is 80% fixed.

An outside supplier has offered to supply the 69,000 units of RX5 for $19.00 per unit.

I will assume that none of the fixed overhead is avoidable.

First, we need to calculate the incremental cost of making 69,000 units. As it is incremental, we will take into account only the variable costs:

Make in-house:

Total variable cost= 69,000*(5 + 9 + 2)= $1,104,000

Now, the total cost of buying:

Buy:

Total cost= 69,000*19= $1,311,000

It is cheaper to make the units in-house. The company will save $207,000.

6 0

3 years ago

If city a is located 35° west of city b, the time at city a is ________ that at city b.

kumpel [21]

If city a is located 35Â° west of city b, the time at city a is earlier that at city b. This is because the earth usually rotates form west to east which is counterclockwise when observed from above. The rotation of the earth gives us course of the day.

8 0

3 years ago

Read 2 more answers

John and Mary have been dating for one month. Lately, Mary has been complaining that when John is around his friends he says mea

Lyrx [107]

Answer:

contextual stimuli

Explanation:

Contextual stimuli refers to such a situation wherein an individual's behavior varies as per the context or as per the situation.

Stimuli refers to stimulation induces an individual to act in a certain way.

In the given case, John behaves differently in both the situations i.e when he is alone or while he is surrounded by his friends. Both the situations extract different sort of reactions.

When he is surrounded by his friends, his reactions are governed by social factor and his social presence. Such reaction could also arise when an individual seeks social recognition and in such events ignores the content being derogatory or mocking.

When the same individual is alone with her, he acts naturally since the social factor does not exist.

3 0

4 years ago