The Foxmoor Company produces three products, X, Y, and Z, from a single raw material input. Product Y can be sold at the split-off point for total revenues of $63,000 or it can be processed further at a total cost of $36,000 and then sold for $108,000. Product Y: Multiple Choice
Should be sold at the split-off point, rather than processed further.
Would increase the company's overall net income by $45,000 if processed further and then sold.
Would increase the company's overall net income by $108,000 if processed further and then sold.
Would increase the company's overall net income by $9,000 if processed further and then sold.
Answers
Answer: Would increase the company's overall net income by $9,000 if processed further and then sold.
Explanation:
The Revenue if sold at the split-off point is $63,000.
But if processed further, we can realize revenue of,
= $108,000 - 36,000
= $72,000
To find out the revenue difference then we will subtract the alternatives.
= $72,000 - 63,000
= $9,000
$9,000 extra will be gained if we process further as opposed to selling at the Split-off point. This shows that Option D or the last option is correct.
Related Questions
On October 1, Eder Fabrication borrowed $66 million and issued a nine-month, 8% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
The Fabricating Department started the current month with a beginning Work in Process inventory of $11,100. During the month, it was assigned the following costs: direct materials, $77,100; direct labor, $25,100; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $114,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:a.$16,370.b.$113,300.c.$83,839.d.$198,339.e.$68,970.
3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the marginal revenue curve is steeper than the demand curve for a single price monopolist?
"Personal selling:" A. involves direct spoken communication between sellers and potential customers. B. costs less than advertising for reaching a large, widespread market. C. tries to communicate with many customers at the same time. D. refers to "promoting" at trade shows, demonstrations, and contests. E. All of these alternatives for "personal selling" are correct.
Answers
Answer:
c. 7215
Explanation:
Number of shares of Stock C = 275
Value of Stock C = $52
Number of shares of Stock D = 240
Value of Stock D = $23
The weight of stock of a given stock is defined by the total value of the stock divided by the total value of the portfolio. For stock C:
The weight of of Stock C is 0.7215 or 72.15%.
Answers
Cloud computing company provides the information
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.
c. Journalize the adjusting entry on December 31 for the impaired goodwill.
Answers
Answer:
April 1
Debit : Patent $1,500,000
Credit : Cash $1,500,000
December 31
Debit : Amortization $125,000
Credit : Accumulated Amortization $125,000
December 31
Debit : Impairment loss $6,000,000
Credit : Accumulated Impairment loss $6,000,000
Explanation:
Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.
Amortization : is the loss of value of an asset due to passage of time.
Amortization Expense = (Cost - Residual Amount) ÷ Useful Life
= ( $1,500,000 - $ 0) ÷ 12
= $125,000
Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)
Final answer:
The student’s questions are regarding three transactions under business accounting: the acquisition of a patent, amortization of the patent rights, and impairing goodwill. Each requires different treatments in journalizing and adjusting entries.
Explanation:
The subject pertains to accounting and how to journalize transactions in business. Thus, it falls under the Business category and the complexity suggests it's at the College level.
To record the acquisition of the patent worth $1,500,000, you would first debit (increase) the Patents account and then credit (decrease) the Cash or Payables account. This aligns with the concept accounting for patents.
To journalize the adjusting entry for the amortization of the patent rights on December 31, divide the $1,500,000 over its 12 years useful life, which calculates to $125,000 each year. On December 31, debit (increase) the Amortization Expense account for $125,000 and credit (decrease) the Patents account for $(125,000).
To journalize the adjusting entry on December 31 for the impaired goodwill of $6,000,000, you would debit (increase) the Impairment Loss account for $6,000,000, and then credit (decrease) the Goodwill account for $6,000,000. This represents impaired goodwill recording.
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B. To demonstrate how supply affects demand.
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C. To indicate how supply and demand relate to price.
D. To show the level of demand at various prices.
SUBMIT
Answers
Answer:
a is your answer
Explanation:
B) identify the required skills.
C) negotiate with the functional supervisor.
D) notify top management.
Answers
Answer:
B) identify the required skills.
Explanation:
After the scope of a project has been clearly defined with the goal well understood, in assembling a project team there is a need to first identify the required skills for the project.
This is key and has to be done before talking to potential team members, negotiating with the functional supervisor and notifying top management.
Answers
Answer: a. Capital expenditure
b. Revenue expenditure
c. Revenue expenditure
d. Capital expenditure
Explanation:
Capital expenditures are usually huge expenditure on fixed assets such as land or building and they re usually incurred to generate revenue for the business.
Revenue expenditures are usually for short term basis and are operating expenses, that us required to run the business daily.
Based on the above explanation, the answers to the following will be:
a. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. - Capital expenditure
b. Paid $390 cash per truck for the cost of their annual tune-ups. - Revenue expenditure
c. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. - Revenue expenditure.
d. Completed an addition to a building for $438,750 cash. - Capital expenditure
Check the attachment for the journal entry
Final answer:
The $78,000 equipment motor replacement and the $438,750 building addition are capital expenditures. The $390 truck tune-ups and the $312 for air-filter replacements are revenue expenditures. Relevant journal entries: 'Equipment' debited and 'cash' credited $78,000, then 'Building' debited and 'cash' credited $438,750.
Explanation:
The transactions can be classified as either a revenue expenditure or a capital expenditure. 1. Paying $78,000 cash to replace a motor on equipment that extends its useful life by four years and completing an addition to a building for $438,750 cash are considered capital expenditures because they are significant investments that will benefit the company for more than one accounting period. 2. Paying $390 cash per truck for the cost of their annual tune-ups and paying $312 for the monthly cost of replacement filters on an air-conditioning system are both classified as revenue expenditures because they only benefit the current accounting period. The journal entries to record transactions A and D would be: Equipment (Debit $78,000), Cash (Credit $78,000) and Building (Debit $438,750), Cash (Credit $438,750).
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