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Grinding mills A and B are being considered for a 12-year service in a chemical plant. The minimum attractive
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- Old Machine New Machine Purchase Price $1,000,000 (7 years ago) $1,500,000 Market Value $200,000 $1,500,000 Book Value $300,000 $1,500,000 Salvage Value $0 (3 years from now) $100,000 (10 years from now) Age 7 0 Original Life 10 10 Yearly capacity 55,000 units 90,000 units Sales Price $7/unit $7/units Yearly expenses $100,000 $90,000 Training expenses not applicable $30,000 Inventory $55,000 $75,000 A company is considering replacing an existing machine with a more modern one. The tax rate is 40%. Assume straight-line depreciation and a RRR of 10%. Assume the salvage value of the investment is equal to zero when calculating the depreciation charges. Find the NPV associated with the project.VIOH BUuget Tor jahuary, 2022 Variable costs: Indirect Material (5 TL per DL hour) 5,000 Indirect Labor (4 TL per DL hour) 4,000 Maintenance (1 TL per DL hour) 1,000 Utilities (0,5 TL per DL hour) 500 10,500 Fixed costs: Supervisory 2,000 Depreciation 2,000 Rent 1,000 Insurance 500 5,500 Total MOH Costs 16,000 Red Rose Company planned to produce 4,000 boxes of Red Rose Delights in January 2022. Each box requires 15 minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (presented above). Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variable overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL. Supervisor can control all costs other than supervisory, depreciation and insurance. Prepare a flexible manufacturing overhead budget with 200 DL-hour increments. The relevant range is 800 DL hours and 1,200 DL hours.Create a units of production depreciation Cargo Van Price $26,000 Machine Price $48,000Salvage value $2,000 Salvage value $3,000Useful life 10 years Useful life 8 yearsTotal miles 90,000 Total hours 13,000Yr 1 miles 12,100 Yr 1 hours 1,250Yr 2 miles 9,400 Yr 2 hours 1,46
- föllowing Cost Factor Site B 170,000$ Site A Price of land 100,000S Monthly cost of delivering materials S 10,000 $ 7,000 Cost of equipment setup $ 12,000 $ 9,000 Cost of utilities per month $ 1,500 1,100 For site A, an extra $ 60/ day is needed for additional site guards. a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?A Initial Cost + Installation $25,000 $15,000 Uniform end of year maintenance $2,000 $4,000 Overhaul, end of 3rd year $3,500 Salvage value $3,000 Service Lifetime 4 уrs 6 yrs Calculate the capitalized costPurchase price: $70,000 Purchase price: Value:$10.000 Purchase price: $30,000 Salvage value: $5,000 Year 4 production: 5,000 units Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 100,000 125.000 Total Units to be Produced Estimated Useful Life of Purchase Price & Estimated Salvage Assets Value 20 Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 $30,000 $20,000 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Building Equipment Truck Price Value Price Value Price Value Actual & Estimated Units-of-Production Year 1 production: 35.000 units Year 1 Production Year 2 Production Estimated 000 production: 25,000 units Year 3 Year 3 Production Estimated * +ableau
- QUESTION FOUR Richy Limited has plant that cost R345 000 on 01 January 2016. Installation andmodification costs R69 000 (including vat). Transfer costs paid to lawyer amounted toR20 000. Transport costs for bringing the asset to location amounted to R20 000. Theplant was ready for use on 01 January 2016. The machines were cleaned on 01 March2016 at a cost of R10 000. Due to the low order levels in April 2016 the plant stood idle.Depreciation is provided over its useful life of 5 years using the straight-line method to anil residual value. Richy Limited measures plant under the revaluation model. The plant was revalued asfollows: 31 December 2016 R310 00031 December 2017 R300 00031 December 2018 R250 000 Richy Limited transfers the maximum amount from the realised portion of therevaluation surplus to equity. VAT must be calculated at 15%.Required:Disclose the above information in the notes to the financial statements for years ending2016, 2017 and 2018. (Include in you answer the…1. Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost of trial runs 750 Installation costs 250 Sales tax 2,600 What is the cost of the equipment? a.$52,000 b.$54,600 c.$54,850 d.$55,600Assume Digby Corp. is downsizing the size of their workdorce by 10% (to the nearest porson) next year from various strategic initiativos Digby is planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit intervows are estimated to cost $100 por omployee in additional to normal separation costs of $5000 How much will the company pay in separation costs f those eot interviews are implomented next year? Soloct: 1 Submit Answer OSisa 100 OS1.422.300 Ossas.000 O s6s, 100
- Conduits made of Steel First Cost Php 80,331 Estimated Life 40 years Scrap Value none Annual Maintenance Php 237 Interest 0.074 What is the Capitalized Cost? *4 decimal points*Direct material used $20,000 Depreciation- plant building $8,000 Indirect material (supplies) $2,500 Depreciation - sales building $6,000 Direct manufactured labor $7,000 Depreciation - plant tools $2.300 Indirect manufactured labor (annually salaries) $3,500 Production 40,000 units The total of "ixed costs" is: Question 3/20o 1.22300, 2 17300. 3.16300. 4.10,300. 5. None of the aboveCommodity markets -purchase 30.000,00 Wage of the staff 10.000,00 Depreciation of fixed assets 6.000,00 Premiums 1.000,00 Advertising and promotion 800,00 Overhead cost 4.000,00 Revenue from sales 250.000,00 Income from investments and investments 15.000,00 Gains from disposal of property, plant and equipment 500,00 Loss from disposal of financial data 100,00 Rental income 50.000,00 Third party fees 2.500,00 Credit interest 1.400,00 Debt interest 4.500,00 Fixed maintenance costs 2.000,00 Considering that: a) the stocks 1.1.20X0 were 5000 € b) the final stock on 31.12.20X0 was determined by physical inventory at 3000 € (c) the income tax rate is 30%; compile the 20X0 income statement, vertical by type.