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liubo4ka [24]
3 years ago
11

Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $

1.95 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $58, 500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit.
a. Calculate the total incremental cost of making 40,000 units. (Round "variable cost per unit" answer to 2 decimal places.)

b. Calculate the total incremental cost of buying 40,000 units. (Round "Purchase price per unit" answer to 2 decimal places.)
Business
1 answer:
pogonyaev3 years ago
8 0

Answer:

a. $143,000

b. $140,000

Explanation:

The computation is shown below:

a. For making 40,000 units

Particulars Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Variable cost per unit $1.95                                              $78,000

Fixed manufacturing costs                   $65,000             $65,000

Total incremental cost to make                                                     $143,000

The $78,000 is come from

= $1.95 × 40,000 units

= $78,000

b. And, for buying 40,000 units

Particulars  Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Purchase price per unit   $3.50                                             $140,000

The $140,000 is come from

= $3.50 × 40,000 units

= $140,000

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Answer and Explanation:

The preparation of  the stockholder equity section is presented below:

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Additional Paid in Capital - Common stock (21,900 shares ×  $20)  $438,000

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Total Contributed Capital $719,400

Add: Retained Earnings $41,600

Total Stockholders Equity $761,000

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Answer:

  1. Five internal controls
  2. Control procedures.
  3. Risk Assestment.
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  5. Monitoring.
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Explanation:

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Answer: the answer is B

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During the​ year, Sheldon Company had net credit sales of $ 47 comma 000. At the end of the​ year, before adjusting​ entries, th
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Answer:

The balance of allowance for doubtful accounts is $ 1,880

Explanation:

Computation of balance in Allowance for Bad Debts

Total credit sales                                             $ 47 comma 000

Estimated bad debts as a % of sales                     4 %

Balance of Allowance for Doubtful accounts      $ 1,880

The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.

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3 years ago
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount
aniked [119]

Answer:

$24,990

Explanation:

2/15 net 45 means that if the customer pays within the period of 15 days, he will get the discount of 2% of invoice amount, otherwise he has to pay the whole amount of invoice within the period of 45 days.

In the given scenario, since the Pound Co. has paid the invoice within the discount period, so therefore, the Pound Co. has availed the discount of 2% and accordingly the sales amount shall be recorded as follows:

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                       =$24,990

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