Devry ACCT 346 entire course DEVRY ACCT 346 Week 4 Midterm 2 | Page 4

and sell them as complete units . Which of the following is not relevant to the decision ?
11 . Question : ( 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 .