When sellers sell goods in a market they are doing so because

Sewtfi861 Corporation makes an extra large part to use in one its fabulous products. A total of 16,000 units of this extra large

LenKa [72]

Answer:

The annual financial disadvantage is $62,560

Explanation:

<u>Analysis of the Costs of Producing Internally and Buying from External Supplier.</u>

Producing Internally External Supplier

Direct materials $3.50 $0

Direct labor $8.10 $0

Variable manufacturing overhead $8.60 $0

Supervisor's salary $4.00 $0

Depreciation of special equipment $2.40 $0

Allocated general overhead $7.60 $7.60

Extra contribution $0 ($2.19)

Purchases Cost $0 $32.70

Product Cost $34.20 $38.11

<u>Conclusion :</u>

We can see that the Product Cost to produce the part internally costs $3.91 less than the cost to purchase from external supplier. Therefore Sewtfi861 Corp has a disadvantage.

Annual disadvantage = 16,000 units × $3.91

= $62,560

6 0

3 years ago

A company purchased a weaving machine for $206,520. The machine has a usedul life of 8 years and a residual value of $11,000. It

Alex777 [14]

Answer:

The amount of depreciation expense that should be recorded for the second year is $28,600

Explanation:

The computation of the depreciation per units or bolts under the units-of-production method is shown below:

= (Original cost - residual value) ÷ (estimated production bolts)

= ($206,520 - $11,000) ÷ (752,000 bolts)

= ($195,520) ÷ (752,000 bolts)

= $0.26 per bolt

Now for the second year, it would be

= Production units in second year × depreciation per bolts

= 110,000 units × 0.26

= $28,600

4 0

3 years ago

A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate. a. ballpark b

xenn [34]

Answer:

B. Budgetary.

Explanation:

They are used to do that because the range of variance could be from -10% to +20%.

Although this, it is not accurate enough to provide a solid basis for a firm commitment because it only represents an approximation of what is need to be done.

I hope this answer helps you.

5 0

3 years ago

Read 2 more answers

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2021, for $283,294,72

otez555 [7]

Answer:

The net amount of the liability Myriad would report in its balance sheet at December 31, 2021 is $287,524,896

Explanation:

First, we need to determine the amount of discount on the bond at the time of issuance

Discount on Bond = Face value - Issuance value = $320,000,000 - $283,294,720 = $36,705,280

June 30, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $283,294,720 x 12% ) - ( $320,000,000 x 10% ) = $33,995,366.4 - $32,000,000 = $1,995,366.4 = $1,995,366

Carrying value = $283,294,720 + $1,995,366 = $285,290,086

December 31, 2021

Now we will use the effective interest method to calculate the amortization of discount on the bond.

Amortization of Discount = ( Carrying Value x Market yield ) - ( Face value x Coupon rate ) = ( $285,290,086 x 12% ) - ( $320,000,000 x 10% ) = $34,234,810.32 - $32,000,000 = $2,234,810.32 = $2,234,810

Carrying value = $285,290,086 + $2,234,810 = $287,524,896

5 0

2 years ago

Jasmine started a new business in the current year. She incurred $18,000 of start-up costs. How much of the start-up costs can b

liq [111]

Answer:

$5,000

Explanation:

According to the Internal Revenue Service, the amount of deduction for startup costs would be limited to $5,000 if the startup costs are $50,000 or less

However, if the start-up costs were more than $50,000, the deduction would be decreased by the dollar amount.

Since in the given scenario, the $18,000 is the startup cost so she is eligible for the deduction of $5,000

5 0

3 years ago