Manny Company uses many kinds of machines in its operations. The following information relates to a machine that was acquired at the beginning of the current year: Cash paid for machine, including VAT of P96,000 Cost of transporting machine Labor cost of installation by expert fitter Labor cost of testing machine Insurance cost for the current year Cost of training for personnel who will use the machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract 896,000 30,000 50,000 40,000 15,000 25,000 60,000 80,000 75,000 65,000 What total amount should be capitalized as cost of the machine?
Q: A limited company issued 100,000 Equity shares of 100 each. M, N, O and P underwrite the entire…
A:
Q: Model A Model B Model C Units of production 1,700 1,200 1,100 Labour hour required 0.3 0.6…
A: Given data :- Total overheads = $103,000 Total activities of Activity 1 : = 1,000 + 600 + 400 =…
Q: Neuf Dix Corporation provided the following information for 2021. December 31 1,500,000 7,000,000…
A: The cash flow statement is prepared to record cash flow from various activities during the period.
Q: 2. The operations manager for an auto supply company is evaluating the potential purchase of a new…
A: Break even point = Fixed cost/Contribution per unit
Q: 24. Jase Manufacturing Co.'s static budget at 7,900 units of production includes $39,500 for direct…
A: Variable costs are costs which changes with the change in activity level in total, but per unit…
Q: Question 3. On December 31, 2020, Adelphi Corporation has outstanding 500 shares of $100 par value,…
A: Preferred stock means the amount raised against which dividend is given to stock holder but after…
Q: A debt of $22,000 with interest of 10% compounded quarterly is to be amortized by payments of…
A: In this solution interest is calculated at $22,000 and compunded quarterly And in this solution at…
Q: Jupiter Corporation earned net income of S$90,000 this year. The company began the year with 600…
A: Formula used: Weighted average number of shares = Number of shares issued x Time period
Q: Mar 1 owner deposited personal cash into the business bank account Mar 2 owner borrowed cash for the…
A: a) Journal Entries Date Account Titles Debit Credit 1-Mar Bank Dr. $5,200…
Q: obtain 20X5 accrual basis net income, should these decreases be added to or deducted from cash basis…
A: Accrual basis income is the income which has been earned by the company or the business during the…
Q: Department A of Forbidden Company furnishes you with the following data: Started in process- 20,000…
A: Solution: Equivalent units of production for materials = Units completed and transferred out + Units…
Q: Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to…
A: Total administrative expense = Salaries + Insurance + Depreciation + Accounting services
Q: Montana co has determined its year end inventory on a fifo basis tp be 635000. info pertaining to…
A: As per IAS 2 , Inventories Inventory is to be valued at lower of cost and Net realizable value.
Q: Doogan Corporation makes a product with the following standard costs: Standard Quantity or…
A: Introduction Material quantity variance calculates difference between standard and actual amount of…
Q: On January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The…
A: Predetermined overhead rate = Budgeted fixed manufacturing overhead/Budgeted direct labor hours
Q: a. Depreciation on the office equipment belongs to the office management activity. b. Of the $23,300…
A: As per activity based budget, activities are analyzed thoroughly to find the cost of each activity.
Q: Entries for Stock Dividends Healthy Life Co. is an HMO for businesses in the Fresno area. The…
A: 1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to…
Q: The stockyholder's section of the balance sheet contains such as the following . Common stock .…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Assume the following information for one of a company's variable expenses: • The actual amount of…
A: A variance is a difference between actual amount and budgeted or planned or standard amount. The…
Q: What is the issue with trying to abolish all property tax? Is property tax mandated by the…
A: The main source of revenue to the government is by the levy of tax on various goods, services,…
Q: 2. Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income…
A: Product A Product B Product C Total Units 32,000 5,000 3,000 40,000 Price per unit $11.00…
Q: Obj. 5 Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells…
A: Following calculations by making table has been done for the required information in the…
Q: PROBLEMS ON COMPANY FINAL ACCOUNTS Premier Co. Ltd has an authorised capital of P 6,00,000 in equity…
A: The term balance sheet refers to a financial statement that reports a company's assets, liabilities,…
Q: Cakdale fashions. INC'S 2021 Income Statement is Reported below net sale Call erodet) Less: Cost of…
A: Note: “As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…
Q: A machine costs $600,000 and is expected to yield an after-tax net income of $23,000 each year.…
A: Accounting Rate of Return - It shows the rate of annual return from the investment made by the…
Q: Problem 1-5 Prepare a Statement of Financial Position using the following accounts of Amaya Trading…
A: Statement of financial position forms a part of financial statement and is prepared with a view to…
Q: Q.2 From the following particulars ascertain the lábour cost per day o 8 hours: 1.Basic.pay…
A: Basic pay=₹200 p.m. Leave pay 5% of ₹200i.e. ₹10p.m. Employer's contribution to PF 8% of ₹210…
Q: Explain and give example of the following Management Reports Procedures Activities: Budget vs.…
A: Budgeting becomes a crucial part of business management as it facilitates evaluating and analyzing…
Q: Cinq Six Corporation provided the following comparative statement of financial position and…
A: Statement of cash flows is one of the financial statement of business, which shows all cash inflows…
Q: Using these data from the comparative balance sheet of Sheridan Company, perform vertical analysis.…
A: Vertical analysis is a part of a comparative analysis of the company. It helps in analyzing the…
Q: 1b) Banks offer overdraft facilities and term loans, among other services, to their corporate…
A: The answer is stated below:
Q: Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase…
A: The profit-linked productivity measure can be defined as the measure of change or effect on the…
Q: A limited company issued 100,000 Equity shares of 100 each. M, N, O and P underwrite the entire…
A:
Q: What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ of…
A: Introduction:- Depreciation is an expense. Which is charged on fixed assets over useful life of the…
Q: If a retiring partner agrees to withdraw less than the book value of his/her interest, the effect of…
A: Solution: If a retiring partner agrees to withdraw less than the book value of his/her interest, it…
Q: Required information (The following information applies to the questions displayed below.) Assume…
A: Part A Maximum depreciation expense $233,000 Description Amount Explanation (1)…
Q: . On May 1, the company XYZ bought a machine that cost 252,000 in order to use for day-to-day…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. Sum of years…
Q: Stevie D. contributed property to Animal Corp, an S-Corporation, with a FMV of $50,000 and a basis…
A: Introduction S Corporation shareholder's are not allowed to deduct losses in excess of their stock…
Q: A company reported the net income of $58,000 for the year ending 2018. However, it was discovered…
A: Introduction: Net income: Net income is shown in Income statement. All revenues and expenses are to…
Q: Samantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Mem-bers of…
A: The additional cost of generating one more amount of production is referred to as the incremental…
Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: What are three of the benefits of common-sized analysis using the inverse operating asset turnover…
A: Common sized analysis evaluates the performance of business by presenting the percentage of the line…
Q: A student needs P4000 per year for 4 years to attend college. Her father invested P5000 in a 7%…
A: Net value means current total value in simple words.Also the term "Withdraw" refers to removing a…
Q: Jerry has been assigned to the audit of Strongbow LLC, a large, decentralized provider of soft…
A: Performing audit procedures on the physical count of inventory is a significant factor to be focused…
Q: A company issues 7% bends with a par value of 5200.000 at per on January1. The market rte on the…
A: Interest on Bonds is calculated by multiplying the stated coupon rate with the face value of bonds.…
Q: A travel agency moves to a new facility and purchases new office equipment for $56,000. Office…
A:
Q: Computing Asset Ratios The following information relates to Mazy's Inc. $ millions Total Assets…
A: Asset turnover ratio measures the effectiveness in which the business uses its total assets to…
Q: Explain and give example of the following Management Reports Procedures Activities: Six Week Cash…
A: cash flow statement It provides data regarding all cash inflows that a company receives from its…
Step by step
Solved in 2 steps
- Stella Company uses many kinds of machines in its operations. The following information relates to a machine that was acquired at the beginning of the current year: Cash paid for machine, including VAT of P96,000 Cost of transporting the machine Labor cost of installation by expert fitter 896,000 30,000 50,000 Labor cost of testing machine Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool 40,000 60,000 80,000 Cost of adjustment to machine to make it operate more efficiently Estimated dismantling cost to be incurred as required by contract Insurance cost for the current year 75,000 65,000 15,000 Cost of training personnel who will use the machine 25,000 How much should be capitalized as cost of the machine?Angel Corp. uses different kinds of machines in its manufacturing process. The following information relates to the acquisition of machines that it has recorded in 2021.· Cash paid for equipment- P250,000· Cost of transporting machine - insurance and transport- P9,000· Labor cost of installation by expert fitter- P15,000· Labor cost of testing equipment- P12,000· Insurance cost for 2021- P4,500· Cost of training for personnel who will use the machine- P7,500· Cost of safety rails and platforms surrounding machine- P18,000· Cost of water devices to keep machine cool- P24,000· Cost of adjustments to machine during 2021 to make it operate more efficiently- P22,500 What is the cost of the machine? A. 358,000 B. 328,000 C. 350,500 D. 380,500BolaBola uses different kinds of machines in its manufacturing process. The following information relates to the acquisition of machines that it has recorded in 2020.· Cash paid for equipment- P250,000· Cost of transporting machine - insurance and transport- P9,000· Labor cost of installation by expert fitter- P15,000· Labor cost of testing equipment- P12,000· Insurance cost for 2020- P4,500· Cost of training for personnel who will use the machine- P7,500· Cost of safety rails and platforms surrounding machine- P18,000· Cost of water devices to keep machine cool- P24,000· Cost of adjustments to machine during 2020 to make it operate more efficiently- P22,500 What is the cost of the machine?
- Tutor Corp. uses different kinds of machines in its manufacturing process. The following information relates to the acquisition of machines that it has recorded in 2021.· Cash paid for equipment- P250,000· Cost of transporting machine - insurance and transport- P9,000· Labor cost of installation by expert fitter- P15,000· Labor cost of testing equipment- P12,000· Insurance cost for 2021- P4,500· Cost of training for personnel who will use the machine- P7,500· Cost of safety rails and platforms surrounding machine- P18,000· Cost of water devices to keep machine cool- P24,000· Cost of adjustments to machine during 2021 to make it operate more efficiently- P22,500 What is the cost of the machine?Invaders Ltd recently purchased a cutting machine from one of its suppliers. The machine was purchased on 01 March 2019 and brought into use on 01 May 2019. The financial year end of the company is 28 February. The following costs were incurred relating to the purchase of the machine: Purchase Price Delivery costs Administration costs Import duties (non-refundable) Staff party to celebrate the acquisition of the new machine Testing to ensure that machine is fully operational Installation costs The following table indicates the number of units produced over a 3-month period: March-May 2019 150 000 units June-August 2019 220 000 units 180 000 units 230 000 units 195 000 units 232 000 units 180 000 units 255 000 units September-November 2019 December-February 2020 March-May 2020 June-August 2020 September-November 2020 December-February 2021 Rand The machine has a residual value of R80 000 and will be depreciated using the units of production method. The machine is expected to produce a…Requlred Informatlon Use the following information for the Exercises below. (The following information applies to the questions displayed below.j Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85,400. The machine's useful life is estimated at 20 years, or 402,000 units of product. with a $5,000 salvage value. During its second year, the machine produces 34,200 units of product. Exerclse 8-6 Double-declining-balance depreclatlon LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Annual Depreciation Expense Choose Factors: Choose Factor(%) Depreciation expense %3D First year's depreciation Second year's depreciation %3D
- Requlred Information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85,400. The machine's useful life is estimated at 20 years, or 402,000 units of product, with a $5.000 salvage value. During its second year, the machine produces 34,200 units of product. Exerclse 8-4 Stralght-Illne depreclation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Depreciation expense Year 2 Depreciation Year end book value (Year 2)JOOVI Inc. has recently purchased and installed a new machine for its manufacturingplant. Th e company incurred the following costs:Purchase price $12,980Freight and insurance $1,200Installation $700Testing $100Maintenance staff training costs $500Th e total cost of the machine to be shown on JOOVI’s balance sheet is closest to:A. $14,180.B. $14,980.C. $15,480.Requlred Information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85.400. The machine's useful life is estimated at 20 years, or 402,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 34,200 units of product. Exerclse 8-5 Unlts-of-production depreclatlon LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Numerator: Annual Depreciation Expense Choose Denominator: Depreciation expense per unit %3D %3D Year Annual Production (units) Depreciation Expense 2
- A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of…Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product. Exercise 8-4 (Algo) Straight-line depreciation LO P1 Determine the machine’s second-year depreciation and year end book value under the straight-line method.Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product. Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1 Determine the machine’s second-year depreciation using the double-declining-balance method.