Item 7Gordon Corporation produced 10,000 digital watches in the current year. Variable costs are $8 per watch. Overhead assigned is $2.25 per watch. A supplier offers the watches for $9.50 each. Gordon's production manager reports the incremental overhead is $1.25 per watch. Gordon should:Multiple ChoiceContinue making the watches as an additional $1.50 per watch would be incurred if bought from the supplier.Continue making the watches as an additional $0.25 per watch would be incurred if bought from the supplier.Buy the watches as they would save $0.75 per watch.Buy the watches as they would save $1.50 per watch.Buy the watches as they would save $1.75 per watch.

Gordon Corporation produced 10,000 digital watches in the current year. Variable costs are $8 per watch. Overhead assigned is $2.25 per watch. A supplier offers the watches for $9.50 each. Gordon's production manager reports the incremental overhead is $1.25 per watch. Gordon should:Multiple ChoiceContinue making the watches as an additional $1.50 per watch would be incurred if bought from the supplier.Continue making the watches as an additional $0.25 per watch would be incurred if bought from the supplier.Buy the watches as they would save $0.75 per watch.Buy the watches as they would save $1.50 per watch.Buy the watches as they would save $1.75 per watch.

Consider the following data for the assembly division of Gannett Watches ​Company: The assembly division uses the​ weighted-average method of process costing. Compute the unit cost of a completely finished watch.Physical Units (Watches) Direct Materials Conversion CostsBeginning​ work-in-process (May 1)a 78 $49,770 $67,350Started in May 2021 495 0 0Completed during May 2021 443 0 0Ending​ work-in-process (May 31)b 130 0 0Total costs added during May 2021 $3,240,000 $1,410,000a. Degree of​ completion: direct​ materials, 90%; conversion​ costs, 40%.b. Degree of​ completion: direct​ materials, 40​%; conversion​ costs, 20​%.

A company has sales of $107,000; cost of goods sold of $68,870; and total direct expenses of $7,420. The department’ contribution to overhead is:

Consider the following data for the assembly division of Crayton Corp.: The assembly division uses the​ weighted-average method of process costing. Compute the unit cost of a completely finished watch. Physical UnitsDirectConversion (Watches)MaterialsCosts Beginning​ work-in-process (May 1) (a)95$491,000$94,984 Started in May 2018525    Completed during May 2018450    Ending​ work-in-process (May 31)(b)170    Costs added during May 2018  $3,218,880$1,400,000 (a)Degree of​ completion: direct​ materials, 90%; conversion​ costs, 40%.(b)Degree of​ completion: direct​ materials, 70​%; conversion​ costs, 30​%.

A business produces and sells watches. In 2015, 4000 watches were produced and 3600watches were sold. Other information for the year included the following:$ per unitdirect materials 60direct labour 80variable selling expenses 15fixed manufacturing overheads 45fixed administrative costs 50What is the cost of goods sold for 2015 if the business uses absorption costing?A $558 000 B $666 000 C $720 000 D $740 000