Answer:
The company should not further process the product as it results in income reduction by $1000.
Explanation:
According to the given data, company current profit for 1000 units is :
= (cost of sell) - (cost of manufacturing)
= $7000 - $5000
= $2000 (current profit)
While when company further process the product, the profit will be :
= (cost of sell) - (cost of manufacture)
= $10000 - ( $5000 + $4000)
= $10000 - $9000
= $1000
It clearly shows that further processing the product may result in reduction of profit by $1000.
Hence the company should not further process the product.
This is a very broad question.
There are lots of relationships between business and supplier, but basically the supplier provides the resources for the business to perform its business function.
Answer:
Cost Of Goods Sold= $1,930,000
Explanation:
Giving the following information:
Beginning Finished goods inventory 190000
Ending Finished goods inventory 150000
Cost of goods manufactured for 2020 amounted to $1890000
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 190,000 + 1,890,000 - 150,000= $1,930,000
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