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The Roasting Department of It's Hot, Co. started the month with 12,090 units in its beginning work in process inventory. An additional 32,675 units were
The Roasting Department of It's Hot, Co. started the month with 12,090 units in its beginning work in process inventory. An additional 32,675 units were transferred in from the prior department during the month to begin processing in the Roasting Department. There were 9,980 units in the ending work in process inventory of the Roasting Department. How many units were transferred to the next processing department during the month? 8. 10,505 b.30,565 C-54,745 d. 34,785 The management of the Flyin' Illini t-shirt Co. has been concerned for some time with the financial performance of its Blue t-shirt line and has considered discontinuing it on several occasions. Accounting information for the firm for last year appears below: Variable manufacturing costs Fixed manufacturing costs Gross Margin Variable non-manufacturing costs Fixed non-manufacturing costs Net Operating Income (Loss) $900,400 $250,000 $125,000 $525,400 $84,000 $77,500 $363,900 Blue $305,000 $150,000 $95.000 $60,000 $78,000 $68,000 (586,000) Grey $420,000 $100,000 $60,000 $260,000 $40,500 $35,000 $184,500 The accountant for the company estimates that $50,000 of the fixed manufacturing expenses and $48,000 of the fixed non- manufacturing expenses could be avoided if the Blue t-shirt line is discontinued. Assume all variable costs could be avoided if the Blue t-shirt line is discontinued and that dropping the Blue t-shirt line would have no effect on the other t-shirt lines. What would be the financial advantage (disadvantage) from dropping the Blue t-shirt line? a. 598,000 b. (565,000) C. 1577,000) d. 521,000 8.585,000
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