How much merchandise inventory will wallace need to purchase

Assignment Help Accounting Basics

Reference no: EM133921050

Problem

The Syracuse Milling Company manufactures an intermediate product identified as W1. Variable manufacturing costs per unit of W1 are as follows: Direct materials $5 Direct labor $15 Variable manufacturing overhead $10 Ithaca Tooling has offered to sell Syracuse Milling 10,000 units of W1 for $40 per unit. If Syracuse Milling accepts the offer, $50,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Syracuse Milling should: Question 41Select one: a. buy W1; the savings is $100,000 b. buy W1; the savings is $50,000 c. make W1; the savings is $50,000 d. make W1; the savings is $100,000 Question 42 Not yet answered Marked out of 2.00 Flag question Question text Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $200,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000. Get the instant assignment help. How much merchandise inventory will Wallace need to purchase next month?

Reference no: EM133921050

Questions Cloud

What is taxable capital gain that will arise from redemption : Belly has 220,000 common shares currently outstanding. What is the taxable capital gain that will arise from this redemption?

Calculate the division 36- losses available to carry forward : A taxpayer has gross rent of $35,000, rental deductions of $31,000, and deductible personal. Calculate the Division 36; losses available to carry forward.

What are the equivalent units for the process : The units in the ending work-in-process inventory are 50% complete. What are the equivalent units for the process?

Write field report diploma accountancy starting nine june : Write field report diploma accountancy starting 9 June 2025 to 18 July 2025, place liwale district council office department district finance and account office

How much merchandise inventory will wallace need to purchase : The Syracuse Milling Company manufactures an intermediate product identified as W1. How much merchandise inventory will Wallace need to purchase next month?

Draw cash flow diagrams for each alternative : A town in northern Colorado is planning on investing in a water. Draw cash flow diagrams for each alternative before calculating Incremental Benefit Cost ratio.

What are the steps in creating a great brand name : What are the steps in creating a great brand name? What are the branding strategies that can be used by even entrepreneur?

Show journal entries in the books of kandan ltd : Kandan Ltd. Issued 40,000 shares of Rs. 10 each payable in full application as per private placement agreement. Show journal entries in the books of Kandan Ltd.

Which least likely to encourage managers to reduce inventory : Many firms have made significant strides in reducing their inventories. Which would be least likely to encourage managers to reduce inventory?

User Account

All Pages