Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 of 7 Fill in the blanks: StarApple Company recently discontinued the manufacture of Model YPhonex. The standard costs for this product were: Direct

image text in transcribedimage text in transcribed

Question 5 of 7 Fill in the blanks: StarApple Company recently discontinued the manufacture of Model YPhonex. The standard costs for this product were: Direct Material $50 Direct Labor 20 Variable Overhead 14 35 $119 Fixed overhead Total 14 Points There are 800 units of this model in finished-goods inventory. The units are technologically obsolete, and the following alternatives are being considered: A. Dispose of as scrap. The proceeds from the sale will equal the cost of transportation to the disposal site. B. Sell to an exporter for sale in a developing country. The sales price to the exporter would be $12 per unit. C. Remanufacture the products to convert them into model YPhoneXR, a model that normally sells for $ 200. The additional cost to convert the YPhonex units would be $ 45; the standard cost to manufacture YPhoneXR is $125. Presently, there is sufficient capacity to manufacture product YPhoneXR directly or to do the necessary conversion work on YPhoneX. B. Sell to an exporter for sale in a developing country. The sales price to the exporter would be $12 per unit. C. Remanufacture the products to convert them into model YPhoneXR, a model that normally sells for $ 200. The additional cost to convert the YPhonex units would be $ 45; the standard cost to manufacture YPhoneXR is $125. Presently, there is sufficient capacity to manufacture product YPhoneXR directly or to do the necessary conversion work on YPhonex. Required: 1. The current carrying value of the YPhoneX inventory is (#1) S 2. In evaluating each alternative, fill in the following missing information: a. The financial benefit of Option A is (#2) S b. The financial benefit of Option B is (#3) $ c. Converting YPhoneX into XR is (more or less?) (#4) per unit d. Therefore, the alternative that offers the most financial benefit is Option (A, B or C?) (#6) income by (#7) $ beneficial than manufacturing YPhoneXR by (#5) S and it will increase operating

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Organizational Communication A Handbook Of Research Theory And Practice

Authors: Owen Hargie, Dennis Tourish

2nd Edition

0415414466, 978-0415414463

More Books

Students also viewed these Accounting questions