Question

please show work/give explaination

ولادیم 6. Compute purchases of new merchandise during the period using the following data: Cost of beginning inventory $40 Cost of goods sold (COGS) $140 Cost of ending inventory $30 A. $10 8 $130- C. $150 D. $210 not enough information-need data on fixed and variable COGS X Manufacturing costs for product X include direct materials $18 per unit, direct labor $1 per unit, variable overhead $2 per unit, and fixed overhead $3 per unit, for a total of $24 per unit. If production volume is increased by 10 units, how much will total manufacturing costs change in the short term? Assume that the new production volume is in the relevant range. A. not enough information need to know the original volume B. increase by $190 24.10 4 10 is r1+2:21/unit TI+2. C. increase by $200 D. increase by $220 rc=Fc+21 xVolume E increase by $240 The rule to follow in making business decisions is: A. Choose the alternative with the highest total revenue B. Choose the alternative with the lowest total costs C. Choose the alternative with the most relevant revenue and the least relevant costs D. Choose the alternative with the highest total profit Both C and D

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

Answer 2 Part 6) 3 The correct answer is B) $ 130 4 Explanation 5 Cost of Purchases = ending inventory + cost of goods sold - beginning inventory 6 = 30+140-40 7 = $ 130 9 Part 7) 10 The correct answer is 11 C) increase by $ 210 12 Explanation 13 Change in total manufacturing cost = no. of units to be produced more * (direct material + direct labour + variable manufacturing overheads) 74 = 10*(18+1+2) 15 = $ 210 increase 17 Note 78 Fixed cost remains for for all level of output and does not increases in short period. 19 Part 8) 20 The correct answer is 21 C) Choose the alternative with the most relevant revenue and least relevant costs 23 Explanation In business decision making relevant cost and relevant cost is considered. So the projects with highest relevant cost should be considered as it is beneficial for the company along with least relevant cost as it is also beneficial for bussiness as it increses net 24 benefit for the company. w Sheet83 Sheet84 Sheet85 sheet201 Sheet202 Sheet203 Sheet204 Sheet205 Shes u 1