Answer:
$70,050
Explanation:
The computation of the acquisition cost of the equipment is shown below:
= Cash price + sales tax + insurance during transit + installation and testing
= $64,600 + $4,000 + $610 + $840
= $70,050
We simply added the all given cost as it is included in the acquisition cost and the same is to be considered
Hence, the acquisition cost is $70,050
Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
<u>Analysis of Costs and Savings</u>
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
Answer:
$840
Explanation:
Data provided in the question:
Beginning inventory = 30 units @ $120 each
Purchases during the year:
Jan. 15: 34 units at $110
May 30: 61 units at $84
Oct. 20: 160 units at $60
Sales during the year totaled 271 units
Now,
Total inventory before selling = 30 + 34 + 61 + 160 = 285
Inventory left after selling 271 units = 285 - 271 = 14 units
Now,
Under the FIFO method, the units purchased first will be sold first
Therefore,
The price of units left inventory will the price of units purchased last i.e $60
Hence,
The cost of ending inventory = 14 × $60
= $840
Answer:
Police officers are national servants. Their salary needs to be adequate so that they can maintain their standard of living.
Explanation:
Police officers should be paid according to their level of skills and expertise. If they are paid below their minimal cost of living then they will feel demotivated and will not be able to justify their job role. They need to be self motivated with their adequate pay so they feel pride to serve the nation. The police officers should be paid equally to the new police hire salary which is $48,200.
