ACCT 346 help A Guide to career/uophelp.com ACCT 346 help A Guide to career/uophelp.com | Page 28

(TCO 7) BigByte Company has 12 obsolete computers that are carried in
inventory at a cost of $13,200. If these computers are upgraded at a cost
of $7,500, they could be sold for $15,300. Alternatively, the computers
could be sold "as is" for $9,000. What is the net advantage or
disadvantage of reworking the computers?
12. Question :
(TCO 7) Olde Store has 12,000 cans of crab meat just a week past the
expiration date. Each can cost $0.31. The cans could be sold as is for
$0.20 each, or relabeled and sold as gourmet cat food. The cost of
relabeling the cans would be $0.04 per can and the cans would then sell
for $0.29 per can. What should be done with the cans and why?
1. Question :
(TCO 3) Describe a process costing system, including the types of
companies that commonly use this system. How can process costing
information be used in incremental analysis?
2. Question :
(TCO 7) Each year, ACE Engines surveys 7,600 former and prospective
customers regarding satisfaction and brand awareness. For the current
year, the company is considering outsourcing the survey to RBG
Associates, who have offered to conduct the survey and summarize
results for $50,000. Robert Ace, the president of ACE Engines, believes
that RBG will do a higher-quality job than his company has been doing,
but is unwilling to spend more than $12,000 above current costs. The
head of bookkeeping for ACE has prepared the following summary of
costs related to the survey in the prior year.
Prepare an incremental analysis in good form to determine the impact on
profit of going outside versus conducting the survey as in the past. Will
ACE accept the RBG offer? Why or why not?
3. Question :
(TCO 4) The following monthly data are available for RedEx, which
produces only one product that it sells for $84 each. Its unit variable
costs are $28 and its total fixed expenses are $64,960. Sales during April
totaled 1,600 units.
-----------------------------------------------------------------------------