Answer:
Company Save $37000 by Buying
Explanation:
given data
make component part = 100 units
Direct Materials = $122000
Direct Labor = 34000
Variable Overhead = 55000
Fixed Overhead = 30000
purchase the component = $200000
fixed costs = $4000
to find out
make or buy decision
solution
first we find here Total Cost for Making component part
total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1
put here value
total cost for make = $122000 + 34000 + 55000 + 30000
total cost for make = $241000
and
now we find here Total Cost for buying component part
total cost = Purchase Price + fixed costs ............2
put here value we get
total cost for buying = $200000 + $4000
total cost for buying = $204000
so
we can say Company Save = $241000 - $204000 = $37000 by Buying
Answer:
$1,000,000
Explanation:
The Amount to be reported as lease liability must <em>depict </em>the present value of future cash outflows required to be paid as the entity enjoys its <em>right to use the asset</em>.
Thus, the present value of the minimum lease payments at lease inception was $1,000,000 represents the amount of lease liability.
Answer:
the current yield on the bond is lower now than when the bond was originally issued.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.
Answer:
Production= 13,000
Explanation:
Giving the following information:
Estimated inventory (units), June 1 18,500
Desired inventory (units), June 30 19,000
Expected sales volume (units):
Area X 3,000
Area Y 4,000
Area Z 5,500
Total= 12,500
To calculate the production for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 12,500 + 19,000 - 18,500
Production= 13,000
To record the write-off of receivables:
Allowance for doubtful accounts ----------------------------$24,000
Accounts Receivable -----------------------------------------------$24,000
To record the accounts receivable collected from the written-off receivable, first restore the accounts receivable with the following entry:
Accounts Receivable ------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
To record the collection of accounts receivable:
Cash -----------------------------------------------------------------$1,900
Accounts Receivable ----------------------------------------------$1,900
Or, the direct journal entry to record the collection of previously written-off accounts receivable is:
Cash ---------------------------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
