Answer:
Total incremental net income = $28,000
Incremental per gallon increase in net income = $0.70 per unit
Explanation:
a. The preparation of incremental statement to find out the increase in net income
Total production $140,000
Less:
Incremental cost
Direct material $68,000
($1.70 × 40,000 gallons)
Direct labor $24,000
($0.60 × 40,000 gallons)
Variable manufacturing
overhead $20,000
($0.50 × 40,000 gallons)
Total incremental cost ($112,000)
Total incremental net income $28,000
b. Incremental per gallon increase in net income = Total incremental net income ÷ Total quantity
= $28,000 ÷ 40,000 gallons
= $0.70 per unit
Therefore the total incremental net income is $28,000 and incremental per gallon increase in net income is $0.70 per unit.
Answer:
True
Explanation:
As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.
Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.
Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.
Answer:
Cash Collection is $122,000
Receivable as on August 31, is $97,000
Explanation:
Total budgeted cash collection in the month of August is $122,000 and total receivables as on August 31 is $97,000.
A schedule for the cash collection is made in MS Excel file, which is attached with this answer, please find it.
Answer:
The correct answer is letter "B": assimilated, exhibiting buying patterns very much like other typical American consumers.
Explanation:
The Asian family described in the example is at its fourth generation after emigrating to the U.S. The possibilities of having assimilated the American culture are greater in such a scenario. English has possibly turned into the primary language of the family.
Asian Americans are typically business-oriented and outstanding in academic life. In this case, the household children are engaged in medical and business schools and one of them is into music.
Thus, <em>after all those facts, that particular Asian American family is likely to have buying patterns as any other American family.</em>
Answer:
Raw materials
<u>Debit Credit</u>
299,000
Wages Payable
<u>Debit Credit</u>
146,000
Factory Overhead
<u>Debit Credit</u>
708,200
WIP inventory
<u>Debit Credit</u>
299,000
146,000
<u> 708,200</u>
1,153,200
Explanation:
3,500pounds x $20 overhead per pound = 70,000
710 inspections x $220 per inspection = 156,200
50 setups x $2,500 per setup = 125,000
17,000 machine hours x $21 = <u> 357,000</u>
Total applied overhead: 708,200
The raw material will be credited as we decrease our inventory
the Direct labor will be wages payable
the factory overhead will be credited to represent the allcoated amount
