Answer:
The company should accept the special order.
Explanation:
The company has the capacity to produce 20,000 units and It is currently only producing 13,000 units.
The company can produce in addition of 7,000 units (more than the number of units from special order)
The revenue of special order: 6,500 x $62 = $403,000
Revenue of special order - Incremental cost of accepting the special order = $403,000 - $382,000 = $21,000 >0
The company gains $21,000 on special order => The company should accept the special order.
Answer:
B.$134,000
Explanation:
Beginning balance $4000
Direct Materials $15,000
Direct Labor $46,000
Overheads $22,000
Cost transferred from Assembly Department $47,000
Total Cost of Goods Transferred to Finish Goods $134,000
Answer:
d. credit to Manufacturing Overhead for $24,000.
Explanation:
Applied Manufacturing overhead = ( 1,800+3000) x $5 = $24,000
So, The journal entry to record this will be,
Dr. Cr.
Work in Process of $24,000
Manufacturing Overhead $24,000
So, manufacturing overhead account is credited with the value of $24,000.
Answer: A monopolistic company will produce to the point where the marginal cost is equal to marginal income, which is the production point called optimal.
Marginal Income = Marginal Cost
In other words, from that point the company is not able to obtain more profit if it increases its production. Because it happens that the cost of producing one more unit is greater than the marginal income for that unit, it would be necessary to reduce the level of production because it is excessive.
As in a situation of perfect competition the company is accepting price, then it sells its product at the price given by the market, so its optimal point will be: Marginal Cost = Marginal Income = Price