What ki operating income will

Assignment Help Cost Accounting
Reference no: EM132804383

KI Corporation produces 10,000 units of K101 each week for use in the assembly of its finished products.  The unit cost of K101 is based on a production level of 10,000 units per week as follows:

Variable cost per unit: $105

Fixed cost per unit: $18

problem 1: K101 also can be purchased from an outside supplier at $80 per unit. If K101 is purchased from the outside supplier, 30% of KI's fixed production costs can be eliminated. If KI purchases K101 from the outside supplier, then KI's operating income will:

a. increase by $126,000.

b. decrease by $126,000

c. decrease by $104,000

d. increase by $104,000

Reference no: EM132804383

Questions Cloud

What was the most difficult or challenging part of course : What was the most difficult or challenging part of the course? Why was it difficult? What can the LIB100 crew do to make the course better or more effective.
Calculate units completed and transferred out : Beginning work in process inventory and 2,850 units in the ending work in process inventory. Calculate units completed and transferred out during March.
Discuss the value of utilizing multiple intelligences : Discuss the value of utilizing multiple intelligences when planning your instruction. Describe why you want to consider the areas of multiple intelligences.
What is the journal entry for the bond issuance on march : What is the journal entry for the bond issuance on March 1, 2020? On March 1, 2020, Ostriw Inc. issued $56,000 of bonds at 105, paying 8% cash interest
What ki operating income will : The outside supplier, 30% of KI's fixed production costs can be eliminated. If KI purchases K101 from the outside supplier, then KI's operating income will
How are questioning strategies used as a guide : In 250-500 words, provide a reflection that explains how using questioning strategies builds on prior instructional sessions, encourages student content.
How much do expect to be in retirement account : 45 years from your expected retirement date. Given this information, how much do you expect to be in your retirement account when you retire?
Justify the need for four categories of measurement : Based on the information learned, create and justify the need for four categories of measurement, such as customer satisfaction or financial performance.
Analyze the models of school organizations : Analyze the models of school organizations and explain how they have helped to form your understanding and concepts of what a school is.

Reviews

Write a Review

Cost Accounting Questions & Answers

  List the strengths and weakness of the budgeting

Write a detailed memo to persuade the CEO to use absorption costing Income statement approach for internal control purpose and List the strengths and weakness of the budgeting

  On 1st january abc company issued 1000000 5 year 12 percent

on 1st january abc company issued 1000000 5 year 12 percent bonds for 1037690. if the bonds pay interest on june 30 and

  Find how many units are in ending work in process inventory

Domingo Corporation uses the weighted-average,How many units are in ending work in process inventory in the first processing department at the end of the month?

  What makes large firms opt to have two distinctive

What makes large firms opt to have two distinctive departments or units that manage the purchasing and acquiring of direct and indirect materials

  How much cost would be charged to an in-house manufacturing

How much cost would be charged to an in-house manufacturing department that consumed 1,800 hours of market analysis time, was provided 280 designs relating to 10 products and requested 92 engineering tests? Show your work.

  Compute the variable utility cost per unit

Advantage of this allocation scheme over allocating actual costs based on actual usage, Compute the variable utility cost per unit, to the nearest cent

  Prepare a gross margin income statement

Use only the information in Part 2 to prepare a Contribution Margin Income Statement and a Gross Margin Income Statement for the month of July 2015. Assume the company produced and sold 5,000 units.

  What are the advantages of a standard costing system

What are the advantages and disadvantages that can result from the use of a standard costing system?

  Indicate the amount of amortization expense on december

Indicate the amount of amortization expense on December 31, 2017, for Wyle Corporation. Purchased a patent with an estimated useful life of 4 years and a legal

  Lump-sum payment

She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn a return of 10 percent on any investment she makes, what is the minimum amount she should be willing to accept today as..

  What amount of direct materials costs is assigned

Timekeeper Inc. manufactures, What amount of direct materials costs is assigned to the ending work in process account for June

  Compute net sales for the two months ended december

Sales Returns and Sales Discounts are reported as contra-revenues, compute Net Sales for the two months ended December 31, 2012.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd