Answer: C.
Explanation: When you pay any bill, you don't borrow money, you give your own money to the company or whoever you are giving the money to.
Answer:
$60,000
Explanation:
Since Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year, and in January of the prior year, Bailey recorded insurance expense of $240,000 for the cash purchase of a four-year insurance policy.
Bailey should report the insurance transaction in the current year's financial statements of an amortization of the insurance expense over the four year period, and take account the portion that pertains to the current year.
Therefore = $240,000 / 4 years = $60,000 per year
Answer:
INCREMENTAL cost allocation method
Explanation:
Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.
Answer:
(a)Let X1 be the number of economy tires and X2 be the number of premium tires.
Objective function:
Maximize Z, where Z = 12X1 + 10X2
Subject to constraints
4X1/3 + X2/2 <= 600
4X1/5 + X2 <= 650
X1/2 + 2X/4 <= 580
X1/5 + X2/3 <= 120
X1, X2 = Z
(b) Check attachment for spreadsheet
(c) The maximum profit that can be obtained is $6032
Question Completion:
Epsilon Co. can produce a unit of product for the following:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Answer:
Epsilon Co.
Epsilon should choose to:
Make since the relevant cost to make it is $56.
Explanation:
a) Data and Calculations:
Direct material $8
Direct labor 24
Overhead 40
Total costs per unit $72
Relevant Costs:
Make Buy
Direct material $8
Direct labor 24
Overhead 24
Total costs per unit $56 $60
b) It costs Epsilon less to make the units than to buy from the outside supplier. The relevant cost excludes the 40% of the overhead that will still be incurred by Epsilon if it buys from the supplier. Relevantly, it costs Epsilon $56 per unit to make when compared to the unit cost of $60 to buy. In absolute terms, it will cost Epsilon $76 ($60 + $16) to buy as against $72 to make a unit of the part.
