It indicates a financial advantage of $18,800 for accepting the offer. Kleffman Corporation currently produces part X31 with an annual output of 2,000 units. According to their accounting data, the production costs at this level are as follows: DM $6.90, DL $4.90, V MO $8.00, Supervisor $2.20, Depreciation $1.40, General $2.80, totaling $26.20 per unit. The unavoidable cost amounts to $2.80 x 2,000 units = $5,600. The depreciation is treated as a sunk cost, reflecting no cash flow impact on the business. Making the part internally results in a total expenditure of $52,400. The potential opportunity cost associated with generating an additional segment margin of $18,800 comes into play. The total cost aligns at $71,200 against the purchase cost of $23.40 x 2,000 = $46,800. The unavoidable cost remains at $5,600, resulting in a total of $52,400 when taken into account. Thus, the differential is computed as 71,200 - 52,400 = 18,800.
$114,000
To begin with,
Net credit sales amount to $2,250,000.
The starting allowance for doubtful accounts stands at $36,000.
During the year, $90,000 worth of uncollectible accounts were written off.
First, we need to ascertain the adjustment needed for the allowance for doubtful accounts:
Excess amount to adjust = Uncollectible accounts written off - Beginning allowance for doubtful accounts
= $90,000 - $36,000
= $54,000
Allowance amount calculated as follows:
10% of the accounts receivable balance:
0.1 × $600,000 = $60,000
Thus, the necessary adjustment for the Allowance for Doubtful Accounts at December 31, 2017 totals to:
Excess to adjust + Allowance amount
= $54,000 + $60,000
= $114,000.
Tamarisk should report an inventory amount of $252,000 as of December 31. To arrive at this figure, consider the following calculation: Inventory = Stock on hand + goods acquired from Sheffield Corp + goods sold to Wildhorse Co. This gives us the calculation: $190,000 + $29,000 + $33,000 = $252,000. All relevant amounts were taken into account, including considerations for FOB destination and FOB shipping point, which contribute to the physical inventory count.
