Which of the amounts are relevant in the decision to dispose

Assignment Help Managerial Accounting
Reference no: EM132624896

In the manufacturing process of Drigo company, an output called substance "pooz" is disposed of as a waste. Recently, the Research Department has discovered a process to convert this waste to detergent.

The following data are available:

1. Cost of disposal is 20 per liter.

2. Additional processing cost will be 6 per liter.

3. Selling price of the new detergent is 14 per liter.

4. Joint cost to manufacture all products is 1.5 billion, of which 250,000 can be allocated to "pooz".

Problem 1: Which of the amounts are relevant in the decision to dispose or sell "pooz" as detergent?

Reference no: EM132624896

Questions Cloud

Forces impacting health delivery systems : Demonstrate an understanding of the forces impacting health delivery systems and the effective and efficient management of healthcare.
Trends with the hmong in california : What are the cultural issues and trends with the Hmong in California? What are the cultural issues and trends with Cuban Americans in Florida?
Strategic choices and deciding on strategy : Examine the nature of a strengths, weaknesses, opportunities, and threats (SWOT) analysis.
Opportunities for youth employment outside of the us : What could or should be done to improve the opportunities for youth employment outside of the US?
Which of the amounts are relevant in the decision to dispose : Which of the amounts are relevant in the decision to dispose or sell "pooz" as detergent? Additional processing cost will be 6 per liter.
How much will the truck depreciate in year three : They paid $20000 and expected to use the truck for five years, then sell it for $5000. How much will the truck depreciate in year three
Overview of the health care system : Are demographic characteristics relating to healthcare interrelated, or should they be addressed separately from a policy perspective?
What would be the effect of the discontinuance : If the department is discontinued, What would be the effect (increase/decrease) of the discontinuance of the department on Iya Company's pretax profit?
Theory of servant leadership : How does an internship working at a food bank meet the theory of Servant Leadership?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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