answer all parts using excel
do in this format , this is the example my teacher gave me.
Use and to morbo and definitions wring Company is trying to decide called CISCO or to buy it from an outside supplier. The part, called P20,2A (LO 3), E Writing The man o r Shainer Manufacturing Comp whether to continue manufacturing a part or to buy it from an outside suppe is a component of the companyinished product The following information willsted from the conting records year ending December 31, 2012 conds and production data for the 1. 8,000 units of CISCO were reduced in the Machining Department. 2. Variable manufacturing costs applicable to the production of als $4.0, direct labor $4.30, Indirect labor 0,43, utilities 50.40. 3. Fixed manufacturing costs applicable to the production of CISCO were nach CISCO unit were: direct materi- Direct Allocated $ 900 Cost Item Depreciation Property taxes Insurance 2100 S1,500 $1,700 surchased All variable manufacturing and direct fixed costs will be eliminated if CISCO is purcha Allocated costs will not be eliminated CISCO is ourchased. So IT CISCO is purchased, fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments 4. The lowest quotation for 8.000 CISCO units from a supplier is SHO,000 5. If CISCO units are purchased, fresh and inspection costs would be 35 per unit, and receiving costs totaling $1,300 per year would be incurred by the Machining Department 8:13 X Chapter 20 homework example (2)....... 2 of 2 PROBLEM 20-2B Make FIZBE BEIZBE $23.750 $ 0 23 000 20250 $23.750 2000 Direct materials (5.000 X $4.75) Direct labor 5.000 X $4.00) Indirect labor (5.000 X $.45) Utilities (5.000 X $35) Depreciation Property taxes Insurance Purchase price Freight and inspection 15.000 X $ 30) Receiving costs Total annualcos 2 000 700 1.500 56.000) 1.500 (1 500 500 54.750 S54.950 $2.700 (b) The company should continue to make FIZBE because net income would be $4.750 less I FIZBE were purchased from the supplier c) The decision would be different. Because of the opportunity cost of $6.000, net income will be $1.250 higher i FIZBE is purchased as shown below Make FZBE $54.930 6.000 S60980 Buy FIZBE $59.700 Total annual cost Opportunity cost Total cost Increase Decrease $14.750) 6.000 $1250 $59.700 (d) Nonfinancial factors include: (1) the adverse effect on employees if FIZBE is purchased, (2) how long the supplier will be able to satisfy the Gil Corporation's quality control standards at the quoted price per unit, and (3) will the supplier deliver the units when they are needed by GW