Kando Company currently pays $11 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $5 for direct materials, $3 for direct labor, and $1 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (b) Should Kando make or buy the part? Direct materials Direct labor Overhead Cost to buy Cost per unit Company should: Make Buy
Q: The final amounts were in for Bramble Corp's fixed-MOH costs. The total fixed-MOH costs consisted of…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The overhead…
Q: Skysong, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected…
A: The Depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a…
A: The note payable is recorded as liabilities in the balance sheet. The accrued interest is the amount…
Q: Marks Company sold goods to Birch Company totaling $51,830 during 2020. When Birch was unable to…
A: Answer to Question(a):- On 1/1/21, the journal entry to record the note would be: Notes…
Q: On January 1, 2022, Blossom Company purchased the following two machines for use in its production…
A: Depreciation expense is the reduction in the value of asset due to its use, wear or tear. Journal…
Q: Corporation makes one product and has provided the following information to help prepare the master…
A: Sales budget is the first budget to be prepared. Once the sales budget is prepared the schedule for…
Q: In 2019, Lee Electronics, a franchise of electronics stores located in small towns throughout the…
A: The details given in the question Units sold - 320 price per unit - $ 830 Repair cost - 2.5%
Q: Liquidity ratios - measure the short-term ability of the entity to pay its maturing obligations and…
A: Financial ratios are quantitative metrics used to evaluate a company's financial performance,…
Q: A20-6 Weighted Average Common Shares (LO 20-2) The following cases are independent. Case A Jethrow…
A: The weighted average number of shares is determined by taking the number of outstanding shares and…
Q: Swifty and Miller Manufacturing is trying to determine the equivalent units for conversion costs…
A: The Numerical has covered the concept of Equivalents Units for Conversion Cost. In the next step, we…
Q: shares Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 985,000 common shares outstanding,…
A: EPS stands for Earnings Per Share which states that how much amount the business makes for every…
Q: ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) Ace Sporting…
A: Rebate means an incentive given to customers for bulk purchases. In case customers has not redeem…
Q: Periodic and Perpetual Systems-Compute Inventory, Cost of Sales, and Gross Profit Using Average…
A: Date Particulars Purchase COGS Balance Units Unit Cost ($) Total ($) Units Unit Cost ($) Total…
Q: 15 20 28 otals More info Aug. 1 Aug. 3 Aug. 12 Aug. 15 Beginning merchandise inventory, 10 books @…
A: Lets understand the basics. There are different inventory systems are followed by the entities which…
Q: Talent Search Inc's income statement for the year ended December 31, 2025 showed: Sales $477,247…
A: Working capital is the difference between the current assets and the current liabilities. It is…
Q: P Corporation paid $440,000 for 80% of S Corporation's $10 par common stock on December 31, 20X6,…
A: Consolidated Balance Sheet for year ending 31/12/2016 Particulars Notes $ ASSETS…
Q: Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina…
A: The journal entries are prepared to record the transactions on regular basis. The gross profit is…
Q: Garden Depot is a retaller that is preparing its budget for the upcoming fiscal year. Management has…
A: Cash budget is the statement which is prepared by the entity for the purpose of estimating the cash…
Q: Botosan Factory has budgeted factory overhead for the year at $614,520, and budgeted direct labor…
A: Overheads allocated = Predetermined overhead rate x Actual Direct labor hours
Q: Briefly explain your understanding of exempt income and state twelve (12) types of exempt income…
A: Exempt income refers to income that is not subject to taxation under the relevant tax laws or…
Q: 1. Identify what type of investment the Yearling stock is for Staub. 2. Journalize the transactions…
A: Introduction:- Investment by Staub In Yearling is also termed as Investment in Associate Company as:…
Q: Sheffield Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During…
A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…
Q: Computers had the following inventory: Nov. 1....Beginning Inventory..... Nov. 5... Purchase of…
A: The inventory can be valued using various methods as LIFO, FIFO and average method. Using FIFO…
Q: Minden Company is a wholesale distributor of premium European chocolates. The company's balance…
A: Business organizations prepare a revenue summary so that they can understand how much profit they…
Q: Hd.31. Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $25 per…
A: Formula : Contribution Margin ratio = Contribution Margin/ Sales Break even point in Sales dollars =…
Q: Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing…
A: Activity-based costing is used to distribute the overhead. This method is used to allocate the…
Q: EXERCISE 5-6 Break-Even Analysis LO5-5 Mauro Products distributes a single product, a woven basket…
A: Formula : (1) Break even point in unit sales = Total fixed cost / unit contribution margin (2) Break…
Q: Hh.157. Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of…
A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for the…
A: Under IFRS and US GAAP, inventory is valued at the lower of cost and net realizable value (NRV).…
Q: Determine the appropriate journal entry for inventory You review the data for inventory on hand on…
A: Introduction Costs like administrative overheads, selling costs, and storage costs are…
Q: Fill in the blanks with the variances and whether they are favorable or unfavorable. Format your…
A: Flexible budget performance report is the statement which is prepared to estimate the spending and…
Q: "Leased Liability":
A: Given Lease Term = 6 years Annual lease payment = $22740 Economic Life of asset =7 years Interest…
Q: Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult…
A: Journal Entry is the primary step to record the transactions in the books of accounts. Unearned…
Q: Becky has a small business. In 2022 she had business income of 270,000. During 2022, she purchased…
A: A section of the tax law known as Section 179 enables companies to write off the entire cost of…
Q: Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are…
A: While preparing cash budget, all cash receipts and all cash expenses are needed to be calculated and…
Q: Whispering Winds Manufacturing Corporation uses both standards and budgets. The company estimates…
A: STANDARD COST PER UNIT Standard Cost Per Unit is Computed by dividing Estimated Units Produced From…
Q: Foster Corporation produces and sells one product. The budgeted selling price per unit is $105.…
A: Accounts receivable is a current asset account that represents the amounts owed to a business by its…
Q: Cullumber Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: Rashad, an unmarried individual with four dependent children (ages 5 to 15) had the following income…
A: Income tax refers to an amount that is being charged by the government on the income earned by an…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Planning budget is the one which is prepared to estimate the revenues and expenses at an estimated…
Q: 1. For 2022, Jane and Leo are married taxpayers who file a joint tax return with AGI of $50,000.…
A: Based on the given information, Jane and Leo's total medical and dental expenses for the year is:…
Q: 10, 2020 30, 2020 2020 Exchange Rate §1 = $.48 §1 = $.50 §1 = $.44
A: The amount of foreign exchange gain or loss recorded on October 10, 2020 is calculated on the basis…
Q: Some of the information found on a detail inventory card for Coronado Inc. for the first month of…
A: Formula Average Cost per Unit = Total Cost of Purchase Unit / Number of units
Q: The Blending Department of Oriole Company has the following cost and production data for the month…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Question 3. Sandals Limited makes high quality hand-made shoes. Each pair requires £60 of material…
A: Explanation : Break even point is the level of sales at which there is no profit/no loss. It means…
Q: Tipton Corporation has gathered the following data on a proposed investment project (Ignore income…
A: Payback period is period required to recover initial amount of investment. This is quite simple…
Q: Benson Manufacturing Company makes tents that it sells directly to camping enthusiasts through a…
A: Introduction In this case, direct costs are the costs that are directly related to the…
Q: Required information [The following information applies to the questions displayed below.) NewTech…
A: The depreciation expense is charged on fixed assets as the reduction in the value of the fixed…
Q: Compute and Interpret Ratios Selected balance sheet and income statement information from Illinois…
A: Financial ratios are defined as measures to project the growth of an entity. Two or more variables…
Q: Elliott Company produces large quantities of a standardized product. The following information is…
A: The production cost report summarizes the production and cost activity within a department for a…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.30 for direct materials and $0.85 for direct labor. Incremental overhead to make this part is $1.44 per unit. The company can buy the part for $3.76 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Make Buy
- Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.40 for direct materials and $0.95 for direct labor. Incremental overhead to make this part is $1.48 per unit. The company can buy the part for $4.02 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: Enter your answers rounded to 2 decimal places. (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Make BuyGelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.45 for direct materials and $1.00 for direct labor. Incremental overhead to make this part is $1.50 per unit. The company can buy the part for $4.15 per unit. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Make Buy Cost difference (b) Company should:The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments.
- The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments. Please answer question 2 thank you very much.(a) Prepare a make of buy uhury Gelb Co. currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.20 for direct materials and $0.75 for direct labor. Incremental overhead to make this part is $1.40 per unit. The company can buy the part for $3.50 per unit, (a) Prepare a make or buy analysis of costs for this (b) Should Gelb make or buy the part? part. Exercise 23-2 Make or buy P1Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.50; direct labor, $24.50, and incremental overhead, $9.30. An outside supplier has offered to sell the product to Wheeler for $47.60. Compute the net incremental cost or savings of buying.
- Factor Company estimates that producing a unit of product would require $8 per unit of direct materials and $24 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $16 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $46 per unit. Factor Company should choose to: Multiple Choice O O O Buy since the relevant cost to make it is $56. Make since the relevant cost to make it is $48. Buy since the relevant cost to make it is $48. Make since the relevant cost to make it is $32. Buy since the relevant cost to make it is $32.V&S Mechanical sells and services plumbing, heating, and air conditioning systems. V&S's cost accounting system tracks two cost categories: direct labor and direct materials V&S uses a time-and-materials pricing system, with direct labor marked up 100% and direct materials marked up 50% to recover indirect costs of support staff, support materials, and shared equipment and tools and to earn a profit (Click the icon to view the cost information) Read the requirements Requirement 1. If Dryden presents Lowry with the replace or repair options, what price would he quote for each? Complete the table below to determine the price Dryden would quote for each option Labor Materials Total Price Repair option Replace option Requirements 1. if Dryden presents Lowry with the replace or repair options, what price would he quote for each? 2. If the two options were equally effective for the 3 years that Lowry intends to live in the home, which option would she choose? 3. if Dryden's objective is to…The MNL Manufacturing Corp has two production cycles. Choosing Production cycle A involves P54/unit of materials and choosing Production cycle B involves P60/unit of materials. However whatever production cycle, the fixed cost will amount to P40,000.00. What is true regarding the above? A. P40,000 is relevant in production cycle A B. P56/unit of materials is relevant in production cycle A. C. P56/unit and P40,000 is relevant in production cycle B D. P56/unit and P40,000 is relevant in production cycle A