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A company must decide between scrapping or reworking units that do not pass inspection. The company has 15,000 defective units that cost $5.30 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $9.10 each. If the units are sold as is, the company will also be able to build 15,000 replacement units at a cost of $5.30 each, and sell them at the full price of $9.10 each. What is the incremental income from selling the units as scrap? What is the incremental income from reworking and selling the units? What must the company decide rework or not rework the units?
wells water systems recently reported 8250 of sales 4500 of operating costs other than depreciation and 950 of
stuchlik catering uses two measures of activity jobs and meals in the cost formulas in its flexible budgets. the cost
Treasury Stock Transaction-Nature corporation engaged in the folloiwing treasury transactions during current year. Complete three journal entries to record these treasury stock transactions.
Do you think it is necessary to use an accumulated depreciation account instead of just adjusting the asset account directly?
potential investments to accelerate profit abc company has the option to purchase additional equipment that will cost
in the current year mikes agi is 50000. mike has no miscellaneous itemized deductions other than the employment-related
total costs to account for is1. the number of units finished during theperiod2. equal to the dollar value offending
Garcia Corporation purchased a truck by issuing an $80,000, 4years, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.
What type of inflation accounting do you favor under high inflationary periods? Do you think tax allocation can improve the prediction of future tax payments in the short run? What are the economic consequences of SFAS No.87?
amir who is single retired from his job this year. he received a salary of 25000 for the portion of the year that he
What are some reasons why a merchandiser might prefer to use a perpetual inventory system over a periodic inventory system?
Grevilla Gerporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla C..
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