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Durango Company manufactures several products, one of which is a western style saddle. Total production costs for one saddle are as follows: Direct materials Direct

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Durango Company manufactures several products, one of which is a western style saddle. Total production costs for one saddle are as follows: Direct materials Direct labor Variable overhead Fixed overhead $440 $340 $280 $140 A supplier who will sell the same saddle to Durango for $1300 per saddle has approached Durango. Fixed overhead will not be affected whether we make or buy the saddle. The company should: Multiple Choice O buy the saddles from the supplier because the company will save $40 per saddle continue to make the saddles because the company will save $40 per saddle O ooo buy the saddles from the supplier because the company will save $100 per saddle continue to make the saddles because the company will save $100 per saddle. An anticipated purchase of equipment for $400,000, with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows Year Net Income 15000 9000 70,000 70000 80000 80000 Bolood Net Cash Flow Sno, 100000 90000 90000 90,000 90,000 00000 What is the payback period? ! o o o o Pioneer Industries gathered the following year-end data (in thousands) for 2017: Cash S200 100 280 Accounts Receivable Prepaid Insurance Long Term Assets Accounts Payable Long Term Liabilities Owners' Equity Net Sales Gross Margin Net Income Dividends 830 375 120 The current ratio at the end of 2017 was Multiple Choice . A materials requisition slip showed that direct materials requested were $20,000 and indirect materials requested were $4,000. The entry to record the transfer of materials from the storeroom into production is: _DR_ CR Multiple Choice O Goods in Process (WIP) Inventory Factory Overhead Raw Materials inventory 20,000 4,000 24,000 o Direct Materials Indirect Materials Goods in Process (WIP) Inventory 20,000 4.000 24,000 e Goods in Process (WIP) Inventory Raw Materials Inventory 20.000 20,000 o Factory Overhead Raw Materials inventory 24.000 24.000

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