Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. golden, inc., has been manufacturing 5,000 units o

Golden, Inc., has been manufacturing 5,000 units of Part 10541 which is used to manufacture...

80.2K

Verified Solution

Question

Accounting

image

Golden, Inc., has been manufacturing 5,000 units of Part 10541 which is used to manufacture one of its products. At this level of production, the cost per unit of manufacturing Part 10541 is as follows: Direct materials Direct labor Variable overhead $ 2 8 4 6 $20 Fixed overhead applied Total A nearby supplier has offered to sell Golden 5,000 units of Part 10541 for $19 per unit. Golden has also determined that two-thirds of the fixed overhead applied will continue even if Part 10541 is purchased from the supplier. Required: Answer the questions that appear in the text box below. Show work where applicable Q1: In the table below, enter the relevant costs (expressed in total dollars, not per unit) associated with making the part or buying from the supplier (show your work, but only enter your total amounts in the table): Make Buy Relevant Costs Q2: What should Golden do? Explain. Q3: Now assume that if Golden accepts the offer from the supplier, they could use the capacity currently used to manufacture Part 10541 to manufacture another product, RAC, and generate an operating profit of $4,000. What impact would this have on the decision? Be sure to defend your

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Q4. Describe and give two examples of the queue systems with the following Kendall’s classifications: (i) G/D/2; (ii) M/G/1/10/1000.

Physics
1.2K views

A wave is turned back when it meets the boundary of the medium in which...

Physics
1.2K views

An electric motor attached to a pickup truck is used to rescue and lift a...

Geometry
1.2K views

O Lesson 1 4 Checkpoint Once you have completed the above problems and checked your...

Basic Math
1.2K views

Use I = PRT to solve.(time is in years)| = $14,400R = 8% ...

Algebra
1.2K views

12 Construct angle B congruent to angle A 13 Construct a triangle with the three...

Accounting
1.2K views

Example You draw a number at random from {1,2,..., 30). What is the probability of...

Accounting
1.2K views

(polows: Estimate what the proper balance of the allowance for doubtful accounts should be as...

Accounting
1.2K views

For each of the following accounts/descriptions, indicate where in the financial statements the item will...

Accounting
1.2K views

Dan has AGI of $50,000 and paid the following taxes during this tax year. State...

Finance
1.2K views

1 You own 320 shares of Stock X at a price of $21 per share,...

Accounting
1.2K views

On January 1,2021, Mikell acquired a foreign subsidiary whose local currency is the stickle. On...