Jane Smith has $20,000 in a brokerage account, and she plans to contribute an additional $7,500 to the account at the end of eve
1 answer:
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Answer:
B) Debit to accumulated depreciation for $22,500.
Explanation:
As for the information provided,
Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.
Depreciation for 4 years = $5,000 4 = $20,000
Depreciation in 5th year for 6 months = $5,000/2 = $2,500
Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500
Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500
Sale price = $20,000
Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500
So therefore, there is loss of $2,500
Thus, option c and option d are invalid.
Further cash received on sale is debited and not credited thus, option a is also invalid.
As the total accumulated depreciation = $22,500
The correct entry will include debit to accumulated depreciation of $22,500.
Thus, option b is correct.
Answer:
(A) Mexican supplier cost = $445,800 or $89.16 average cost.
In-house cost = $714,000 or $142.8
(B) Mexican supplier total weighted score = 0.265 or 22.43%
In-house supplier weighted score= 0.238 or 23.8%
(C) Yes, explaination below
Explanation:
Mexican Supplier cost breakdown:
Quota price $83 X 5000 = $415, 000
Transport cost
1. to transport 5000 doors would require making a total of 20 trips from Mexico to USA (5000/250 doors)
2. at a cost of $825 per trip, total cost to transport doors is = $16,500.
Sending Engineers costs and Negotiation cost =
$5000 + $1000
(Transport+Sending Engineers cost) =
$22,500
Inventory carrying cost= 20% of cost of storing the goods. (total of all other cost) 20% x 22500 = $8300
Total cost = $445,800 or $89.16 average cost.
Total weighted score average:
Using the formula;
Weight= score x rating
Score = Weight/rating (making score subject of the formula)
Mexican Weighted
score1= 16%/3 = 0.0533, + 0.12 score2, + 0.035 + score3, + 0.056 + score4. = 0.265.
American weighted score
Using same formula;
0.04 score1, + 0.15 score2, + 0.014 score3, + 0.034 score 4 = 0.238.
The company should outsource the product. Why? because it will reduce total cost of doors, making them cheaper for if they do so, resulting in higher profit.
