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Question - The Southern Digital, Inc. produces a high-quality computer chip. Unit production costs (based on capacity production of 100,000 units per year) follow:
Direct material
$50
Direct labor
20
Overhead (20% variable)
10
Other information:
Sales price
100
SG&A costs (40% variable)
15
Refer to Southern Digital, Inc. Assume, for this question only, that the Memory Division is operating at a level of 70,000 chips per year. What is the minimum price that the division would consider on a "special order" of 1,000 chips to be distributed through normal channels?
Prepare a bank reconciliation as of November 30 using the form below. Journalize the necessary entries based on the reconciliation
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