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Kirkland Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are: Direct materials $0.60 direct manufacturing labor 3.00 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 1.60 Total $6.40 Mike Company has offered to sell to Kirkland Company 10,000 units of the part for $6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $9,000 if Kirkland accepts the offer. In addition, $1.00 per unit of fixed manufacturing overhead on the original item would be eliminated. What is the relevant per unit cost for the original part which alternative is best for Kirkland Company? By how much?
Calculate the total cost of a project or Job and compare that cost with potential revenues. One of the company’s best clients has offered WCB $11,000 to perform a power systems harmonics analysis for the client’s primary plant. While your client real..
Is it ethical to choose a transfer price for tax purposes that is different from the transfer price used to elucidate a business unit's performance?
Do the following decisions have the same precedential value: (1) Tax Court regular decisions, (2) Tax Court memo decisions (3) decisions under the small cases procedure of the Tax Court? Why?
qin july 2010 zinger corp purchased 20000 gallons of numerol for 61000 to use in the production of product 43mr7. in
Bendetta, a high-tax-rate taxpayer, owns several rental properties and would like to shift some income to her daughter, Jenine. Bendetta instructs her tenants to send their rent checks to Jenine so Jenine can report the rental income.
Vance Company's balance sheet reported assets of $11,900, liabilities of $4,500 and common stock of $1,600 as of December 31, 2010. If Retained Earnings on the December 31, 2011 balance sheet is $9,000 and Vance paid a $2,000 dividend during 2011, th..
Coffee Shop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and long-term liabilities total $300 million. Use these data to wri..
Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2006, using the periodic inventory method.
What is your definition of Corporate Global Responsibility (CSR) - which stakeholders of a company would be interested in a company's CSR initiatives and why?
The monthly payment on a 1,000,000 15 yr. mortgage at 6% is 8,438.57 per month. How much of that 1,000,000 on day 1 is deemed to be "current portion of mortgage payable"?
(Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchant- dice having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. Prepare journal entries on the Arnold Company books to record all the even..
Norman Company sells MP3 players for $60 each. Variable costs are $40 per unit, and fixed costs total $90,000. How many MP3 players must Norman sell to earn net income of $210,000?
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