Answer:
$570,000
Explanation:
At the time of recording of the fixed assets, the fixed assets should be reported at purchase cost or historical price or originally cost or acquiring cost, whether all other values are given i.e appraisal value, the seller purchased value, similar warehouse book value, etc
So, in the given case, it would be recorded at $570,000 as the buyer purchase the building at this cost only.
Answer:
Product costs= $259,700
Explanation:
Giving the following information:
Direct materials $ 168,800
Direct labor $ 90,900
<u>The product costs are all expenses directly involved in the production. It generally involves the prime costs (direct material and direct labor).</u>
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Product costs= direct material + direct labor
Product costs= 168,800 + 90,900
Product costs= $259,700
Answer: $4.38
Explanation:
Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.
Units produced = Units completed and transferred out + equivalent WIP
= 169,000 + (26,000 * 79%)
= 169,000 + 20,540
= 189,540 units
Total Conversion costs = beginning conversion costs + conversion costs added during period
= 103,000 + 726,925
= $829,925
Conversion cost per equivalent share
= 829,925/189,540
= 4.3786
= $4.38
Answer:
If Impala decides to buy from the external source , it would then save the fixed of $1,750
Decision: Impala should be buy from the external source
Explanation:
<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>
The relevant cash flows figures include:
- Internal variable cost of production
- External purchase price
- Savings in internal; fixed cost as result of buying outside
Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500
Increase in variable cost if purchased externally = 66500 - 66500 = 0
If Impala decides to buy from the external source , it would then save the fixed of $1,750
Decision: Impala should be buy from the external source
The more information an entrepreneur acquires during the process of feasibility analysis, the higher the chance that his or her predictions will be close to the mark, risk will be reduced, and uncertainty managed.
<h3><u>
Explanation:</u></h3>
The study or examination about the extent to which the proposed idea will be practical and can be achieved at an economic manner refers to the feasibility study. In business it is very essential to decide whether to take up a project or not. It also helps in narrowing the project and plan accordingly.
It also helps in making predictions about whether the expected results can be attained from a particular idea or a project. Thus during the feasibility study the entrepreneur must obtain as much information as possible as it helps him in the evaluation of risks, uncertainties and other related things.
