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Eagle Company manufactures 10,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed
Eagle Company manufactures 10,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $ 70,000 115,000 20,000 10.000 $215,000 An outside supplier has offered to sell the component for $20. What is the effect on income if Eagle Company purchases the component from the outside supplier? $5,000 decrease $15,000 increase $5,000 increase O $15,000 decrease In Maple Company, the following job cards were totaled at the end of the month: Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 $4,250 Job 246 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 244 were sent to customers; Jobs 245, 247, and 248 were completed and sent to finished goods. What is the cost of goods sold for the month? O $10,730 O $10,850 O $12,575 O None of these choices are correct. Crater Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. Product A1 Sales Value at Split-Off $10,000 30,000 20,000 40,000 Units Produced 3,000 5,000 4,000 6,000 If Processed Further Additional Costs Sales Value $2,500 $15,000 3,000 32,000 4,000 25,000 4,000 45,000 B2 C3 D4 Which product(s) should be sold at split-off to maximize profits in the short run? O Product D4 O Product C3 O Product B2 O Product A1
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