The following are the jensen corporation's unit costs of making and selling an item at a volume of 1,000 units per month (which represents the company's capacity):

manufacturing:
direct materials $1.00
direct labor $2.00
variable overhead $0.50
fixed overhead $0.40

selling and administrative:
variable $2.00
fixed $0.80

present sales amount to 700 units per month. an order has been received from a customer in a foreign market for 100 units. the order would not affect current sales. fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 700 units and 1,000 units. the variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales. direct labor is a variable cost.

assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. the sale of these defective units will have no effect on the company's other sales. which of the following costs is relevant in this decision?

a. $3.50 variable manufacturing cost
b. $3.90 unit product cost
c. $2.00 variable selling and administrative cost
d. $6.70 full cost

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?