HW4 - Jack Meehan Accounting 152 CP, P.9 9/11/2007 Section...

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Accounting 152 CP, P.9 9/11/2007 Section 111 CP, P.11 Myrafters Inc. Yurrafters Inc. Number of Rafters 4000 4000 Revenue ($50 per rafter) 200000 200000 Cost of Guides 160000 160000 Net Income 40000 40000 Myrafters Inc. Yurrafters Inc. Number of Rafters 6000 2000 Revenue ($50 per rafter) 234000 100000 Cost of Guides 160000 80000 Net Income 74000 20000 3. The advantage of Myrafters is that they have reduced costs, thus making the demand for their rafts at a premium. Yurrafters, using a commission basis is always guarenteed to make money since they have a margin of $10 per rafter. 4. You could lower prices and commissions for Yurrafters, or make your ride better in some fashion (better rafts, ride, guides, etc.) E3-6 There are underapplied overhead costs of $2,000 for the year. BI of RM 8,000 Purchases 32,000 - EI of RM 7000 RMU 33,000 + Direct Labor 40,000 + MOH 48,000 TMC 121,000 + BI of WIP 6,000 - EI of WIP 7,500 COGM 119,500 P3-20 Cash A/R 8000 13000 197000 k 200000 j 100000 l
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HW4 - Jack Meehan Accounting 152 CP, P.9 9/11/2007 Section...

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