Answer and Explanation:
The computation is shown below;
a) The In-house purchasing cost last year is
= Fixed costs + Variable costs
=$85,000 + Total number of purchase orders × cost per order
= $85,000 + 1400 × 15
= $106,000
b)
The outsourcing cost is
Outsourcing cost = Fixed costs +Variable costs
= $100,000 + Total number of purchase orders × cost per order
= $100,000 + 1400 × 5
= $107,000
c) Total number of purchase orders = 1600
In-house purchasing cost = 85,000 + 1600 × $15 = $109000
Outsourcing cost = $100,000 + 1600 × $5 = $108000
Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.
Answer:
The use of comparable analysis in real estate considers value of all components of comparable properties, and estimate price based on sum of features of each property.
So for the $400,000 property that has 3 car garage, we will need to find out the value of one garage.
Then since the garage size is the only difference between the two properties, adjust price downwards by deducting the value of one garage.
Explanation:
Answer: $83
Explanation:
Given that,
On 1 June,
Materials purchased = 50 units
Unit price of material = $1.30
On June 15,
Materials purchased = 50 units
Unit price of material = $1.20
Total cost of 65 units:
= (Material purchased on 1 June × Unit price of material) + [(65 units - 50 units) × $1.20]
= (50 units × $1.30) + (15 units × $1.20)
= $65 + $18
= $83
The ending balance of prepaid expense can be calculated using the following formula:
Ending balance = Beginning Balance + Debit entries – Credit Entries
We are given the following information:
Beginning Balance = $240,000
Total Debit entries = $110,000
Total Credit entries = $80,000
Hence,
Ending balance = 240000+110000-80000 = 270,000
The ending balance of prepaid expense shall be <u>$270,000
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