Monthly variable costs to process into staples

Assignment Help Managerial Accounting
Reference no: EM13916474

Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and grade B wiring. The following are the expenditures to date:

Jan. 1 $100,000 Bulk steel purchase

Jan. 2 - Feb. 15 $150,000 Cost to melt steel

Feb. 16 - Mar. 31 $200,000 Cost to mold steel into wires, polish wires and wrap around large bolts

April 1    $3.00/pound market price for grade A wire

              $4.00/pound market price for grade B wire

Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold in the market on 5/1/XX for $8.00 per pound.

Required:

1) Should Walters Company sell their products in the marketplace on April 1st or on May 1st?

What recommendation would you make to Walters Company?

2) What is the incremental monthly revenue (loss) for staples and paperclips?

3) How should the $450,000 of joint costs be accounted for in the further processing decision?

Reference no: EM13916474

Questions Cloud

Tax perspective from a nontax perspective : What are the tax and nontax advantages of each form? Select two business types and provide an example of when that selection is most appropriate from a tax perspective and from a nontax perspective.???
Cultural universals effect on humanism : When we identify the cultural universals of the people that have a greater impact on our existence it gives us an understanding and a greater appreciation for the value of our being.
Present on different chromosomes : Ebony (black body, b) and apterous (vestigial wings, v) are recessive traits, present on different chromosomes. A cross is performed between an ebony female with normal wings and an apterous male with normal body color.What are the genotypes of the p..
Revise the given sentences to present the bad news : Revise the following sentences to present the bad news with passive-voice verbs. We cannot offer free shipping after January 1. Our retail stores will no longer be accepting credit cards for purchases under $5.
Monthly variable costs to process into staples : Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold in..
Analyze the dynamic response of piezo actuator : Compact linear actuators are required to compensate for vibration induced by the motion of a robot arm. The dynamic performance of the actuators is very important to ensure they can provide the required high frequency movements when a load is appl..
What is the main purpose of the evaluation system : Write a memo to the CEO outlining the performance criteria, the reasons for selecting the included criteria, and both advantages and disadvantages of stated criteria and the system as a whole.
Six types of modern day estates in real property : List and explain each in detail the six types of modern day estates in real property. Remember to give details on each and a proper Bluebook citation to your reference. This is an essay not a short answer question!
My proposal to research as a cultural anthropologist : I would propose that research is done on success, and how to enhance the educational experience that would help develop a well rounded individual to succeed in any culture of choice.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  George ltd manufactures

George Ltd manufactures two types of coils used in electric motors. The two types are: C20 and D40. They both require plastic and metal

  Accounting records of path leader wireless

Problem 1: The accounting records of Path Leader Wireless include the following:

  Forten company, a merchandiser, recently completed

The company's balance sheets and income statement follow.

  Which cost systems would companies use

Recognize which costing system - job order or process cost - the following companies would use:

  Questiona tax avoidance and tax evasion are two very

questiona tax avoidance and tax evasion are two very different concepts. compare and contrast the differences between

  Description of technology management

Technology Management Paper Prepare a 700 word paper identifying at least three challenges to either employee or customer retention that managers are likely to face due to changes in technology, and describe how you would address each challenge in..

  Draw a scatter diagram of crsl customers

Draw a scatter diagram of CRSL customers and staff costs and mark the relevant range and high-low method to estimate the behaviour of CRSL staff cost based on customer numbers within the relevant range. Use an equation to express the results of thi..

  The journal entry to record the purchase of raw materials

Soledad Corporation had $29,000 of raw materials on hand on December 1. During the month, the Corporation purchased an additional $75,200 of raw materials. The journal entry to record the purchase of raw materials would include a:

  Difference between hard and soft risk management benefits

What are the benefits of risk management? What is the difference between hard and soft risk management benefits? Why would an organization choose one risk management benefit over another?

  Job order costing systems

The law firm of Tilton and Henderson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during June:

  Production for the drawing department

Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.

  Cash conversion cycle

A firm currently has a 36 day cash cycle. Assume that the firm changes its operations such that it decreases its receivables period by 4 days, increases its inventory period by 1 day and decreases its payable period by 2 days.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd