Harrison's limited uses a backflush system and lean process costing (as described in the textbook). at the beginning of may, the firm has $0 in all inventory accounts. actual and budgeted costs are the same. the firm has no direct labor or overhead costs. on may 5, harrison limited purchases 100 units of raw materials for $5,000. it uses 95 units of these raw materials, leaving $250 of raw materials in the warehouse at the end of may. the total number of units completed and in process is 300, and 10 of those units are still in process. if you searched for the rip account balance on may 15 and then again on june 15, what would the searches show

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.