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Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: (5 points) Direct materials Direct labor Variable manufacturing overheacd Fixed manufacturing overhead $35,000 15,000 10,000 20,000 $80,000 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Coyle Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $22,000. Instructions Prepare an incremental analysis report for Coyle Company which can serve as informational input into this make or buy decision Cos 70,000 o. 00 3 S.poo o,ooo variable over bend lo, 000.o 2,0 VII. DJV Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly- line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22,000 at January 1 and $15 December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31 Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold. (5 points) VI. Coyle Company manufactured 6,000 units of a component part that is used in its incurred the following costs: (5 points) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $35,000 5,000 0,000 20,000 $80.000 Another company has offered to sell the same component part to the company for $13 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Coyle Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $22,000. Instructions Prepare an incremental analysis report for Coyle Company which can serve as input into this make or buy decision. $0.00 3 Spoo 0. 00 SIS, 000. 09 Io, 0o0.0e variable over hrd .s, op prmy.frer feld 4 2,0000, o..e $2,0 VII. DJV Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22.000 at January December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31 Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold. (5 points) taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly- VII. DJV Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly- line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31 Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold. (5 points) VII. DJV in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly- line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was 565,000 at January 1 and $50,600 at December 31 Corporation incurred the following costs while manufacturing its product. Materials used manufactured. (b) Compute cost of goods sold. (5 points)

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