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Mnenie [13.5K]
3 years ago
5

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

als$ 53Direct labor40Variable overhead36Fixed overhead31Total costs$ 160Crayola Technologies Inc. has contacted Rubium with an offer to sell 7 comma 000 of the subassemblies for $ 145 each. Rubium will eliminate $ 85 comma 000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the​ subassemblies? What is the difference between the two​ alternatives?
Business
1 answer:
Gwar [14]3 years ago
4 0

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Total Unit Cost of Making Product  = Direct Material + Direct Labor + Variable Overhead + Fixed Overhead

= $53 + $40 + $36 + $31

= $160

Total Unit Cost of Buying Product = Fixed Cost + Purchase Cost

= $31 + $145

= $176

Particular                     Make product($) Buy product($)

Direct material(7,000 × $53) 371,000                          -

Direct labor(7,000 × $40) 280,000                          -

Variable overhead(7,000 ×$36) 252,000                   -

Fixed overhead(7,000 × $31) 217,000             132,000

                                                                             (217,000 - 85,000)

Purchase cost                                   7,000 × $145 = 1,015,000

Total cost                                    1,120,000 1,147,000

Difference between two alternatives

= $1,147,000 - $1,120,000

= $27,000

According to the analysis, rubium make the product because buying product cost is more than making the product.

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Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes
nadya68 [22]

Answer:

1. Taxable income = $76 million

2.  Net income = $65.25 million

3-a. Net current Deferred Tax Asset = $1.95 million

3-b. Net current Deferred Tax Liability = $6.25 million

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers I now provided as follows:

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.

1-a. Note: See the attached excel file for the determination of the amounts necessary to record income taxes for 2021 and the taxable income.

From the attached excel file, we have:

Taxable income = $76 million

1-b. The journal entries will look as follows:

<u>Details                                                       Debit ($'m)             Credit ($'m)     </u>

Tax expense (6.75 + 19 - 3)                           22.75

Deferred tax asset (25% * (1 + 13 - 2))             3.00

Deferred tax liability (25% * (7 + 20))                                              6.75

Tax payable (25% * 76)                                                                   19.00

<u><em>(To record tax expense.)                                                                                 </em></u>

2. What is the 2021 net income?

This can be determined as follows:

Net income = Pretax accounting income - Tax expense = $88 million - $ 22.75 million = $65.25 million

3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

3-a. The deferred tax amounts should be classified as follows.

From installment receivable in point (a) in the question:

Current deferred tax liability in 2022 (25%* ($4  / 2)) = $1

Noncurrent deferred tax liability in 2023 (25%* ($4 / 2)) = $1

From the depreciation in point (c.) in the question:

Noncurrent deferred tax liability (25%* ((24 + 24) - (14 + 7))) = $6.75

From the Warranty Expense/Payable in point (d.) of the question:

Current deferred tax asset (40%* 3) = $1.20

From the Acrrued Expense/Payable in point (e.) of the question:

Current deferred tax asset (25%* 7) = $1.75

Noncurrent deferred tax liability (25% * $6) = $1.50

3-b. These will be reported reported in the 2021 balance sheet as follows:

Sherrod, Inc.,

Balance Sheet (Partial)

As the Year Ended 31 December, 2021

<u>Details                                                                         $'Million    </u>

<u>Assets:</u>

Current Deferred Tax Asset (1.20 + 1.75)                      2.95

Current Deferred Tax Liability                                     <u> -1.00  </u>

Net current Deferred Tax Asset                                <u>   1.95  </u>

<u>Liabilities:</u>

Noncurrent Deferred Tax Asset (A)                              1.50

Noncurrent Deferred Tax Liabiity (1.0 + 6.75) (B)      <u>   7.75  </u>

Net current Deferred Tax Liability (C = B - A)       <u>    6.25   </u>

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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What role does competition play in business and global trade?
Darya [45]

Answer:

Its always a competition

Explanation:

People use to complete on how the world gets and receives items same in business, companies compeate all the time trying to get the most money, visitors, and promotions.

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determine the payback period for an investment. evaluate the acceptability of an investment project using the net present value
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An investment is an asset or object received with the aim of producing earnings or appreciation. Appreciation refers to a boom in the value of an asset over the years.

That in shape is loose cash and a guaranteed go-back on your funding. you could start with as low as 1% of each paycheck, though it is an excellent idea to intention for contributing at least as a great deal as your business enterprise match. for instance, a not-unusual matching association is 50% of the first 6% of the profits you contribute.

Investors are understandably cautious. record-high inflation and back-to-back interest rate increases have all triggered volatility. The S&P 500 briefly fell into a undergo market on May 20, again on June 13, and for a 3rd time in September. however, all of that also shouldn't mean sitting out of the marketplace.

Learn more about investment  here

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4 0
1 year ago
Net operating income equals: Multiple choice question. dollar sales – dollar sales to break even. unit sales × unit contribution
GalinKa [24]

Net operating income equals (unit sales - unit sales to break even) × unit contribution margin.

What is net operating income?

Real estate professionals utilize the metric known as Net Operating Income, or NOI, to swiftly determine the profitability of a certain venture. After deducting required operational costs, NOI calculates the revenue and profitability of investment real estate property.

Is net operating income the same as profit?

After all, costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses. Contrarily, net income is the profit that is still left over after all expenses made during the time have been deducted from sales revenue.

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6 0
2 years ago
A company has a petty cash fund amount of $400. When​ replenished, it has petty cash tickets of $30 for gas​ expense, $30 for po
MrMuchimi

Answer:

$80

Explanation:

The Replenish journal entry is shown below:-

Gas expense Dr,                          $30

Postage expense Dr,                $30  

Supplies expense Dr,                   $10  

Miscellaneous expenses Dr,        $10  

      To, Cash                                            $80

(Being replenish of fund is recorded)

Therefore cash credited for $80

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3 years ago
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