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3 years ago

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Business

1 answer:

Sliva [168]3 years ago

7 0

Answer:

If the company buys the units, income will decrease by $1,000.-

Explanation:

Giving the following information:

Direct materials $54.00

Direct labor 35.00

Variable overhead 40.00

Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.

First, we need to determine the total cost of making the units:

Total cost= total variable costs + avoidable fixed costs

Total costs= (54 + 35 + 40)*6,000 + 89,000= $863,000

Now, the cost of buying:

Total cost= 6,000*144= $864,000

If the company buys the units, income will decrease by $1,000.-

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We describe the flow of costs in a process costing system and prepare appropriate journal entries to record costs. A process cos

slava [35]

Answer:

Indication of which account to be debited and credited:

Transaction Debit Credit

1. Work in Process - Cutting Raw materials

2. Work in Process - Shaping Manufacturing overhead

3. Work in Process - Shaping Work in Process - Cutting

4. Finished Goods Inventory Work in Process - Shaping

5. Cost of Goods Sold Finished Goods Inventory

Explanation:

a) Transaction Analysis:

1. Work in Process - Cutting Department $12,000 Raw materials $12,000

2. Work in Process - Shaping Department $10,000 Manufacturing overhead $10,000

3. Work in Process - Shaping Department $90,000 Work in Process - Cutting $90,000

4. Finished Goods Inventory $80,000 Work in Process - Shaping Department $80,000

5. Cost of Goods Sold $100,000 Finished Goods Inventory $100,000

5 0

3 years ago

You are interested in investing in a five-year bond that pays a 6.6 percent coupon rate with interest to be received semiannuall

NikAS [45]

Answer:

Assuming a par value of $1,000, the most i would be willing to pay for this bond is $875.85

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid semi-annually and the par value of the bond that will be paid at the end of 5 years.

During the 5 years, there are 10 equal periodic coupon payments that will be made. Assuming a par value equal to $1,000, in each year, the total coupon paid will be $1000*0.066$ =$66. This annual payment will be split into two equal payments equal to $\frac{66}{2}=33$ . This stream of cash-flows is an ordinary annuity.

the required rate of return is to 9.8% per annum which equates to 4.9% per semi annual period.

The PV of the cash-flows = PV of the coupon payments + PV of the par value of the bond

=33*PV Annuity Factor for 10 periods at 4.9%+ $1,000* PV Interest factor with i=4.9% and n =10

$= 33*\frac{[1-(1+0.049)^-^1^0]}{0.049}+ \frac{1,000}{(1+0.049)^1^0} =875.85$

5 0

4 years ago

Marker Corp. exchanged an old truck for a piece of equipment and cash on January 1st 2019. The truck was purchased at a cost of

LiRa [457]

Answer:

There is a 1,500 gain

Explanation:

we have commercial subtance so we can recognize gain/loss

these will be the numebrs of the transaction:

truck

purchase 24,000

acc depreciation 17, 000

book value 7, 000

equipment 8,000

cash 500

total 8,500

received - given up = gain/loss

8,500 - 7,000 = 1,500 gain

the journal entry would be

Equipment 8,000 debit

cash 500 debit

acc dep truck 17,000 debit

Truck 24,000 credit

gain on disposal 1,500 credit

3 0

4 years ago

A company purchased a computer system at a cost of $34,000. The estimated useful life is 8 years, and the estimated residual val

Iteru [2.4K]

Answer:

Year 2= $4,687.5

Explanation:

Giving the following information:

Purchase price= $34,000

Useful life= 8 years

Salvage value= $9,000

<u>To calculate the depreciation expense under the double-declining-balance, we need to use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= [(34,000 - 9,000)/8]*2= $6,250

Year 2= [(25,000 - 6,250)/8]*2= $4,687.5

3 0

3 years ago

At which point of the business cycle would prices probably be highest?

myrzilka [38]

The answer is during A Peak

6 0

3 years ago

Read 2 more answers