Answer: Consulting firms and government organizations
Explanation:
When external bodies; Consulting firms and any organization carry out a task in a firm, it is said that the particular job was outsourced for services to be provided by an external body.
Answer:
A) Q1 = 20 and Q2 = 60
Explanation:
Please find the attached file with the solution.
Answer:
Savings in additional cost as result of making $154,350.00
Explanation:
The relevant costs for this decision would be the variable cost of production and the external cost of purchase.
Unit variable cost of internal production
= 10.80 + 9.80 + 4.10 = $24.7
Variable cost of making ( $24.7 × 49,000) = 1,210,300.00
Variable cost of Buying ($27.85 × 49,000) = <u>1,364,650.00</u>
Savings in additional cost as result of making <u> 154,350.00</u>
Note that the fixed cost is irrelevant for the purpose of the make or buy decision . This is so because they would be incurred either way. Hence, they are not to be considered for the analysis
Answer:
$78,540
Explanation:
Given that,
Beginning balance = $65,800
Direct material = $67,400
Direct labor = $186,600
Transfer to finished goods inventory = $353,220
December 31 balance in work-in-process inventory:
= Beginning balance + Direct material + Direct labor + Manufacturing overhead - Transfer to finished goods inventory
= $65,800 + $67,400 + $186,600 + (60% × $186,600) - $353,220
= $65,800 + $67,400 + $186,600 + $111,960 - $353,220
= $78,540
