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katen-ka-za [31]
3 years ago
12

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct la

bor, $14, variable overhead $3 and fixed overhead, $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.
Business
1 answer:
Usimov [2.4K]3 years ago
6 0

Answer:

$5 per unit

Explanation:

In this question, we compare the total cost and outside supplier cost which are shown below:

Total cost = Direct material per unit + direct labor per unit + variable overhead per unit

= $10 + $14 + $3

= $27

And, the outside supplier cost is $32

So, the incremental cost would be

= $32 - $27

= $5 per unit

The fixed cost would remain unchanged. So, we do not consider it.

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On May 31, Money Corporation's Cash account showed a balance of $13,500 before the bank reconciliation was prepared. After exami
Georgia [21]

The amount of cash that should be reported in the company's balance sheet as of May 31 is $2,975.

<h3>What is a balance sheet?</h3>
  • A balance sheet also referred to as a statement of financial position or a statement of financial condition in financial accounting, is a summary of the financial standing of a person or an organization, including a corporation, private limited company, sole proprietorship, business partnership, government agency, or not-for-profit organization.
  • As of a particular date, such as the conclusion of its financial year, assets, liabilities, and ownership equity are listed. It's common to refer to a balance sheet as a "picture of a company's financial status."
  • The balance sheet is the only one of the four fundamental financial statements that only apply at one particular period in a company's fiscal year.
<h3>Solution -</h3>

Deposits outstanding = $3,050 (+)

actual amount on check my Money corporation = $95 (+)

Service fees = $170 (-)

∴ 3050+95-170=2975

So, the amount of cash that should be reported in the company's balance sheet as of May 31 is $2,975.

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How does bankruptcy affect a persons credit rating
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The inside address of a cover letter belongs to?
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The stockholders' equity of Oriole Company at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000
WINSTONCH [101]

Answer: $1,717,200

Explanation:

The amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend will be:

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Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end:
gregori [183]

Answer:

What is allowance for doubtful debt?

This represents management's estimate of the amount of accounts receivable that will not be paid by customers. They are amount owed by debtors, whose likelihood of collection is not certain.

1 Bad debts expense Dr   ($18,000 × 0.25%)  $45  

              To Allowance for Doubtful Accounts $45

(Being the bad debt expense is recorded)

2.  Bad debts expense $45        

          ($72 - $27)

              To Allowance for Doubtful Accounts   $45

(Being the bad debt expense is recorded)

3 Bad debts expense    $105      

           ($72 + $33)

           To Allowance for Doubtful Accounts $105

(Being the bad debt expense is recorded)

4 Allowance for Doubtful Accounts $15  

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(Being the allowance for doubtful accounts is recorded)

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Explanation:

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