Mel's meals 2 go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. mel's kitchen and adjoining meeting room operate at 70 percent of capacity. mel's purchases the cookies for $0.60 each but is considering making them instead. mel's can bake each cookie for $0.20 for materials, $0.15 for direct labor, and $0.45 for overhead without increasing its capacity. the $0.45 for overhead includes an allocation of $0.30 per cookie for fixed overhead. however, total fixed overhead for the company would not increase if mel's makes the cookies. mel himself has come to you for advice. "it would cost me $0.80 to make the cookies, but only $0.60 to buy. should i continue buying them? " materials and labor are variable costs, but variable overhead would be only $0.15 per cookie. two cookies are put into every lunch. how would you advise mel? prepare a schedule to show the differential cost.

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Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c. prepaidrent. onseptember1ofthecurrentyear, thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.