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Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 2,000 units):
Direct materials . . . . . . . . . . . . . . . . . . . . . . . $50Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . 106Variable overhead . . . . . . . . . . . . . . . . . . . . . 32Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . 94Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $282Trailblazers has offered to sell the assembly to Mobility for $220 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $80,000. Required :Should Mobility make rear wheel assemblies or buy them from Trailblazers? Prepare a schedule that shows the differential costs per rear wheel assembly.
Factory utilities of $2,200 are payable, prepaid factory insurance of $1,800 has expired, and depreciation on the factory building is $3,500. Prepare journal entries for each type of manufacturing cost.
What number of shares can be used in the computation of basic EPS for the year 2002?
part a of this assignment requires an analysis of certain aspects of brown ltdafter studying brown ltd answer the
Explain the weakness in internal control and identify the control principle that is violated and suggest a change in the procedure that will result in good internal control.
Prepare the correct journal entries to record the transactions.
For Warren Corporation, year-end plan assets were $2,144,800. At the beginning of the year, plan assets were $1,755,200. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000.
What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $200?
Traceable fixed expenses totaled $216,000 and were allocated as 70 percent to Eastern and 30 percent to Western. Common fixed expenses totaled $295,000.
the operating cost for a proposed waste-water treatment plant is evaluated as 500000 per year increasing by 100000 each
What is the elasticity coefficient for each price
laine and emma form the equal el partnership. emma contributes cash of 100000. laine contributes property with an
The cost of the merchandise returned was $2,850. Journalize Sundance Co.'s and Butter field Co.'s entries for the payment of the amount due.
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