Answer:
I believe its B.
Explanation:
C and D don't make any sense since it is impractical to suffer during the hot months, and A is wrong (I believe) since the budget needs to be shifted to bring attention to the AC. So by elimination its B.
Answer:
The correct answer is all of the above
Explanation:
Scrap or the rework costs are the costs which is incurred in order to repair the items that are defective. And the decision to rework or scrap an item or product, ground on the benefits or advantage of the incremental costs.
If the reworked units generate or yield greater advantage or benefit rather than the selling them as scrap, then the decision to rework will be considered.
And if the decision of rework is taken, then the management should consider the incremental costs, revenue or profit from selling the defective units as scarp and the lost profit on selling and making the new units while the rework is performed.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
Gross profit = Sales - Cost of goods sold
= (440 x 90 + 220 x 80 + 264 x 50) - (440 x 56.7 + 220 x 50.4 + 264 x 31.5)
= (39,600 + 17,600 + 13,200) - (24,948 + 11,088 + 8,316)
= 70,400 - 44,352
= $26,048
Ending inventory schedule attached in the excel archive
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.
