ASSIGNED CH 8 PROBLEM statements 11 19 23

5 My work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $9.11 million, and the equipment has a useful life of 7 years with a residual value of $1,200,000. The company will use straight- line depreciation. Beacon could expect a production increase of 44,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 71,000 units Proposed (automation) 115,000 units Per Per Production and sales volume Unit Total Unit Total Sales revenue $90 $ ? $90 $ ? Variable costs Direct materials $16 $ 16 Direct labor 15 ? Variable manufacturing overhead 9 9 Total variable manufacturing costs Contribution margin 40 ? $50 Fixed manufacturing costs Net operating income ? $ 1,130,000 $ 53 ? $…

Could you please solve mcqs after solving this question As Soon As Possible Company XYZ purchased a plant costing $100,000 and $5,000 was incurred to get the plant installed at company. It is estimated that the plant has a useful life of 10 years with zero residual value. However, the units produced by using this plant from year 1 to year 10 are given as 1000, 900, 800, 750, 600, 500, 450, 400, 350, 150 respectively.

Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be advantageous to many manufacturing companies. To protect their process, they applied for and obtained a patent. Which of the following costs associated with the assembly process should Wolfe amortize as an intangible asset? $12,000 in disposal fees to remove hazardous waste collected during research and development $1.56 million in development costs to develop the process $37,000 to apply for a patent for the process $914,000 in research costs to learn about the process

camdenccinstructure.com/courses/3788/asSignments/35976 Waterway Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $900000 $450000 Price 135000 Accumulated Depreciation -0- 10 years 0- Remaining useful life -0- 10 years Useful life Annual operating costs $360000 $270000 If the old machine is replaced, it can be sold for $36000. The company uses straight-line depreciation with a zero salvage value for all of its assets Which of the following amounts is relevant to the replacement decision? O $135000 O$90000 O$315000 $450000

Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000. Exercise 8-7 (Algo) Straight-line depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. Choose Numerator: Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Depreciation Choose Denominator: Annual Depreciation = = Annual Depreciation Expense Depreciation expense Year-End Book Value

E. Abandonment Decisions Consider the following project for Hand Clapper, Inc. The company is considering a 4-year project Page 231 to manufacture clap-command garage door openers. This project requires an initial investment of $18 million that will be depreciated straight-line to zero over the project's life. An initial investment in net working capital of $950,000 is required to support spare parts inventory; this cost is fully recoverable whenever the project ends. The company believes it can generate $12.4 million in revenue with $4.5 million in operating costs. The tax rate is 21 percent and the discount rate is 13 percent. The market value of the equipment over the life of the project is as follows: Year Market Value (in $ millions) 1 $15.0 2 11.0 3 8.5 4 0.0 a. Assuming Hand Clapper operates this project for four years, what is the NPV? b. Now compute the project NPVS assuming the project is abandoned after only one year, after two years, and after three years. What economic…

eBook Differential Analysis Report for Machine Replacement White Noise Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $57,900, the accumulated depreciation is $23,200, its remaining useful life is five years, and its residual value is zero. A proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $109,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations:   CurrentOperations ProposedOperations Sales $183,500   $183,500   Direct materials $62,500   $62,500   Direct labor 43,400   14,500   Power and maintenance 4,100   6,900   Taxes, insurance, etc. 1,400   4,800   Selling and administrative expenses 43,400   43,400   Total expenses…

Hi please give me instruction on this question cant figure out.. Differential Analysis for Machine Replacement Taipei Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $77,400, the accumulated depreciation is $31,000, its remaining useful life is five years, and its residual value is negligible. On September 27, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $161,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:   Present Operations   Proposed Operations   Sales $245,400   $245,400   Direct materials 83,600   83,600   Direct labor 58,100   —   Power and maintenance 5,400   28,600   Taxes, insurance, etc. 1,900   6,400…

Differential Analysis Report for Machine Replacement Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $75,000, the accumulated depreciation is $30,000, its remaining useful life is five years, and its residual value is zero. A proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $141,600. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations: Current Proposed Operations Operations Sales $237,800 $237,800 Direct materials $81,000 $81,000 Direct labor 56,300 18,800 Power and maintenance 5,300 9,000 Taxes, insurance, etc. 1,900 6,200 Selling and administrative expenses 56,300 56,300 Total expenses $200,800 $171,300 a. Prepare a differential analysis report…

Required information [The following information applies to the questions displayed below.] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total $4,100,000 1,200,000 610,000 410,000 81,000 41,000 $6,442,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Patont costs capitalized Required: 1. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.

Required information [The following information applies to the questions displayed below.] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total $ 3,500,000 1,100,000 550,000 350,000 75,000 35,000 $ 5,610,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. 2. How much should Satellite Systems report as research and development expense in the income statement? Research and development expense

Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated depreciation is $24,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $180,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: Present Proposed Operations Operations Sales $205,000 $205,000 Direct materials $72,000 $72,000 Direct labor 51,000 Power and maintenance 5,000 18.000 Taxes, insurance, etc. 1,500 4,000 Selling and administrative expenses 45,000 45,000 Total expenses $174,500…

Differential Analysis for Machine Replacement Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated depreciation is $24,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $180,000. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:   Present Operations   Proposed Operations   Sales $205,000   $205,000   Direct materials $72,000   $72,000   Direct labor 51,000   —   Power and maintenance 5,000   18,000   Taxes, insurance, etc. 1,500   4,000   Selling and administrative expenses…

Mr. Jones is considering replacing one of the machines in the factory and seeks your advice. The following information is relevant; Purchase Price Salvage Value Estimated Useful Life Variable Operating Costs Fixed Operating costs Old Machine 252,000 50,000 6 Years 52,000 40,000 New Machine 380,000 50,000 5 Years 15,000 6,000 The Old Machine was bought one year ago and has been depreciated using the straight line basis You are Required to report to Mr. Jones on: a) Whether there will be a gain or loss on the sale of the old machine. b) Whether the old machine should be replaced.

Scott Company purchased a new machine on January 1, Year 1, at a cost of $224,000. The machine is expected to have an eight-year life and a $20,000 salvage value. The machine is expected to produce 800,000 finished products during its eight-year life. Production during Year 1 was 70,600 units and during Year 2 was 117,000 units. TB Problem Qu. 6-135 (Algo) Part 1 Required: 1. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the straight-line method. Deprecation under straight-line method Year 1 Year 2

Scott Company purchased a new machine on January 1, Year 1, at a cost of $224,000. The machine is expected to have an eight-year life and a $20,000 salvage value. The machine is expected to produce 800,000 finished products during its eight-year life. Production during Year 1 was 70,600 units and during Year 2 was 117,000 units. TB Problem Qu. 6-135 (Algo) Part 1 Required: 1. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the straight-line method. Deprecation under straight-line method Year 1 2. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the units-of-production method. Depreciation under units-of-production method Year 2 Depreciation under double-declining-balance method Year 1 3. Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 under the double-declining- balance method. Year 2 Year 1 Year 2

A manufacturing company is planning to install a new CO2 treatment module to the chimneys of its older factory. There are 3 alternatives Alter. Purchase/lnstallation Life (yrs) Annual Maintenance/Operation Slyear $25,000 $50,000 $30,000 Annual Savings from Reduced Pollution fees Slyear $215,000 $400,000 $325,000 Cost $ $375,000 $1,100,000 $890,000 13 11 Dotermine which one is most efficient and which one most profitable using a method of your choice Given annual rate of i 5% per yeoar compounded yearly

Don Williams is General manager of Carib Systems who received a proposal to replace the Version 1 with Version 2 Point of Sales (POS) equipment at the company. Williams collects data about the proposal on Version 1 and Version 2 as follows: Version 1 POS Version 2 POS Original cost $425,000 $170,000 Useful life 5 years 3 уears Current age 2 years O years Remaining useful life 3 years З уears Accumulated depreciation S195,000 Not purchased yet Current book value $230,000 Not purchased yet Current disposal value (in cash) $120,000 Not purchased yet Final disposal value (in cash 3 years from now) SO so Annual POS cash operating costs $60,000 $20,000 Annual revenues $1,250,000 $1,250,000 Annual non POS related operating costs $920,000 $920,000 Required: As the Management Accountant: 1. Compare the costs of Version 1 POS and Version 2 POS. Consider the cumulative results for the three years together, ignoring the time value of money and income taxes. 2. Advise Mr. Williams on the factors…

Don Williams is General manager of Carib Systems who received a proposal to replace the Version 1 with Version 2 Point of Sales (POS) equipment at the company. Williams collects data about the proposal on Version 1 and Version 2 as follows: Version 1 POS           Version 2 POS Original cost                                                                               $425,000                     $170,000 Useful life                                                                                    5 years                         3 years Current age                                                                                  2 years                        0 years Remaining useful life                                                                        3 years                        3 years Accumulated depreciation                                                                $195,000          Not purchased yet Current book value…

Miller Optometry is considering the purchase of a new lens grinder to replace a machine that was purchased several years ago. Selected information on the two machines is given below:                                                                       old                 new  orignal cost when new                                80,000               85,000 accumulated depreciation to date              32,000             ------- current salvage value                                   26,000              ------ Annual operating cost                                  4,000                 3,000 Remaining useful life                                  4 years              4 years                              Ignore income taxes and the time value of money in this problem.                         Required:            Compute the total advantage or disadvantage of using the new machine instead of the old machine over the next four years.