Sale as Scrap Rework Incremental income (loss) The company should:

Q: Kim Yin Company has 15,000 units in inventory that had a production cost of $3 per unit. These units…

A: we have to calculate which option is benefit to company.

Q: NUBD Co. has 24,000 defective units of a product that cost P8 per unit to manufacture, and can be…

A: Given  Defective Units = 24,000 Manufacturing Cost = P8 Sale price of defective units = P4 Rework…

Q: Chang Industries has 1,500 defective units of product that already cost $44 each to produce. A…

A: Period cost means  which are not directly included in the process of production. General and…

Q: Futura Company purchases the 50,000 starters that it installs in its standard line of farm tractors…

A: Financial advantage (disadvantage) of making the starters = (Purchase price per unit - Relevant…

Q: MSI is considering outsourcing the production of the handheld control module used with some of its…

A: The decision to buy or make the product depends on the cost of making and the cost of buying the…

Q: MSI is considering outsourcing the production of the handheld control module used with some of its…

A: Relevant cost of making per unit = Direct materials + Direct labor + Variable manufacturing overhead…

Q: What is the net advantage (disadvantage) of purchasing the part rather than making it? Ahringer…

A: Answer- P 20,000 Working Making Cost per unit Direct Material       19.10 Direct Labour…

Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…

A: Lets understand the basics. When management have more than one alternative then management try to…

Q: NUBD Co. has 24,000 defective units of a product that cost P8 per unit to manufacture, and can be…

A: Number of defective units = 24,000 Cost to produce per unit = P8 cost of rework per unit = P2…

Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…

A: Incremental income is the amount of extra money earned by putting an extra effort on products or…

Q: Garcia Company has 10,000 units of its product that were produced last year at a total cost of…

A: Relevant and Sunk Costs: Relevant costs are those costs in any managerial decision-making process…

Q: Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens…

A: Answer:

Q: Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture.…

A: This question deals with the preparing schedule to show selling defective units as scrap or rework.…

Q: Garcia Company has 11,500 units of its product that were produced at a cost of $172,500. The units…

A: In decision-making questions of Scrap or Rework analysis, the decision will be made on the basis of…

Q: Trifecta Distributors has decided to discontinue manufacturing its X Plus model. Currently, the…

A: Differential revenue per unit = Sales after rework - sale as is = $160 per unit - $104 per unit =…

Q: Stone contractors has received a special one time order for 1,500 tube light at P15 per unit.…

A: Special order decision is the situation where the entity have to decide to continue with the current…

Q: Futura Company purchases the 70,000 starters that it installs in its standard line of farm tractors…

A: Solution:- Calculation of  the financial advantage (disadvantage) of making the 71,000 starters…

Q: A company has an inventory of 1,000 assorted parts for a line of missiles that has  been…

A: The inventory  which has been discontinued  Is a historic cost not relevant  for the  decision…

Q: Micron Manufacturing produces electronic equipment. This year, it produced 7,500 oscilloscopes at a…

A:

Q: Cee Incorporated has some raw materials (Banana) that originally costs 35,000. This raw material…

A: It has been asked in this question that if a company reduces the rework cost on the scrap value of…

Q: A company must decide between scrapping or reworking units that do not pass inspection. The company…

A: Working note:

Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…

A: Given that, Defective units = 22000 Units Cost of manufacturing a defective unit = $6 per unit Sale…

Q: Kim Yin Company has 15,000 units in inventory that had a production cost of $3 per unit. These units…

A: Alternative 1 - profit /loss if reworked and then sold :- Total Sales price    =…

Q: Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the…

A: Particulars Amount Amount Outsourcing Cost ($2,000 * 1,000)   $2,000,000 Less: Cost Savings…

Q: Andrea Company manufactures a part for its production cycle. The annual costs per unit for 20,000…

A: Answer a) Statement of Comparative Cost assuming that there is no alternative use for the facilities…

Q: Jackson Inc. disposes of other companies’ toxic waste. Currently, Jackson loads the waste by…

A: Given is: Cost of Machine = $200,000 Reduction in Labour Cost = $5 per load Loads in a year = 10000

Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…

A: Incremental analysis:   Incremental analysis refers to the analysis of differential revenue that…

Q: A company must decide between scrapping or reworking units that do not pass inspection. The company…

A: If some goods has been scraped and become defective , then company might have two options :- First…

Q: A company must decide between scrapping or reworking units that do not pass inspection. The company…

A: Incremental income = Income after Rework - Income from Scrap where, Income after Rework = Revenue…

Q: Boom has damaged materials of 2,000 units with cost of 200,000. If rework, additional cost is 20,000…

A: Cost of goods sold is the total of all direct Cost of producing the goods sold by a company like…

Q: Road master shocks has 15000 units of a defective product on hand that costs $80,000 to manufacture.…

A: In the given case there are two options where the company can either sell it as scrap or sell it…

Q: Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000.…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical…

A: Solution The relevant cost are those which cost which increases / decreases the total cost of…

Q: Concord, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of…

A: Given information, •Un-assembled product: Cost= $13 Selling price= $54   •Assembled product:…

Q: Ahngram Corp. has 1,000 defective units of a product that cost $2.20 per unit in direct costs and…

A: Incremental net income (loss) from reworking the units = (Additional revenue per unit - rework costs…

Q: Fixed The company has 1,000 units left over from last year's production which have small defects and…

A: Here discuss about the cost and allocation cost of refurbished units or the defective units which…

Q: Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per…

A: Profit per unit = Sales Price - Variable Cost - Fixed Cost                             $ 5 - $ 3 - $…

Q: Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to…

A: Relevant cost is of great importance to the management and are incurred when specific decisions are…

Q: Phillips HVAC and Plumbing has received a special one-time order for 1,500 faucets (units) at $5 per…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Selma Corporation uses Part PB7 in one of its products. The company's Accounting Department reports…

A: Introduction: The Make or buy choice is the demonstration of settling on a vital decision between…

Q: A company has an inventory of 1,300 assorted parts for a line of missiles that has been…

A:

Q: Edidas Company needs 20,000 units of Part GX to use in producing one of its products. If Edidas buys…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to…

A: The future differential cost is relevant in decision making and affects the decisions of the…

Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…

A: Introduction: The sales associated with an increased quantity sold are known as incremental revenue.…

Q: BCD Company has 7,000 obsolete toys carried in inventory at a manufacturing cost of Phó per unit. If…

A: Given that 7,000 toys are carried in inventory at a manufacturing cost of Ph6 per unit Total cost =…

Q: Tiny Dog Company has 15,000 units of its sparkle dog collar in inventory that had a production cost…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Kim Yin Company has 15,000 units in inventory that had a production cost of $3 per unit. These units…

A: To take decision regarding reworking on material or sell it as scrap, we need to check the…