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Novacar Company manufactures automobiles. The red card division sells its red cars for $25,000 each to the general public. The red card have manufacturing cost of $12,500 each for variable and $5,000 each for fixed cost. The division's total fixed manufacturing cost are $25,000,000 at the normal volume of 5,000 units. The blue car division has been unable to meet the demand for its cars this year. It has offered to buy 1,000 cars from the red car division at its full cost of $13,000. The red car division has excess capacity and the 1,000 units can be produced without interfering with the outside sales of 5,000. The 6,000 volume is within the divisions relevant operating range. Explain whether the red car division should accept the offer. Support your decision showing all calculation.
January 5, 2008 received a charter granting the right to issue 5,000 shares of $100 par value 8% cumulative, non-participating preferred stock and 50,000 shares of $5 par value common stock. Record the journal entries for the transactions listed a..
gruner company produces golf discs which it normally sells to retailers for 6.94 each. the cost of manufacturing 18800
S. Stephens and J. Perez are partners in Space Designs. Stephens and Perez share income equally.
lido manufactures a and b from a joint process cost 70000. five thousand pounds of a can be sold at split-off for 20
the steps in the accounting cycle are listed in random order. fill in the blank next to each step to indicate its order
The pretax operating income of the division during 2011 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 40%. Ziltech reported net income for the year of $7.2 million. Determine the ..
natalie owns a condominium near cocoa beach in florida. this year she incurs the following expenses in connection with
xyz company has two service departments maintenance and personnel and two producing departments printing and
dugan company applies manufacturing overhead to jobs on the basis of machine hours used. overhead costs are expected
He purchased a building worth $500,000, equipment worth $1 million and $600,000 worth of raw materials - construct a Balance Sheet.
Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (i) cashand (ii) net working capital:
If it began the quarter with $18,000 of inventory at cost and purchased $72,000 of inventory during the quarter, its estimated ending inventory using the gross profit method is:
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