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q On June 30, 2024, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units-of-production method. During the six months of 2024, 24,000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: $36,000.   $43,900.   $18,000.   $21,950.

GKD Construction purchased a truck 6 years ago at a cost of $71600. Because the old truck required an overhaul of $4100 last year, and repairs of $2500 are needed in the current year, the company is now planning to purchase a new truck to replace the old one. The old truck has a trade-in value of $5400. The cost of the new truck is $82400. What amount of these costs represent sunk costs? $83600 O $71600 $81100 O $75700 SUP

P10-7 Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from $35,000 to $200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time from planning and supervisory person-nel, as well as that of some of the company’s officers, because it was a more sophisticated type of machine than the regular production models. Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled “Asset Construction Account.” An analysis of the charges to this account as of December 31, 2019, follows:

During 2014, Luxe Company installed a production assembly line to manufacture furniture. In 2014, Luxe Company purchased a new machine and rearranged the assembly line to install this machine. The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production. The following expenditures were incurred in connection with this project: Machine 150,000 Parts added in rearranging the assembly line to provide future benefits 80,000 Labor to install machine 28,000 Labor and overhead to rearrange the assembly line 36,000 What amount of the above expenditures should be capitalized in 2014? a. 150,000 c. 214,000 b. 178,000 d. 294,000

im Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $75,200, the accumulated depreciation is $30,100, 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 $156,400. 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 $238,400   $238,400   Direct materials $81,200   $81,200   Direct labor 56,400   —   Power and maintenance 5,300   27,800   Taxes, insurance, etc. 1,900   6,200   Selling and administrative expenses 56,400   56,400   Total expenses $201,200…

Reveille, Inc., purchased Machine #204 on April 2021, and placed the machine into production on April 3, 2021. The following information is relevant to Machine #204: Price P60,000 Freight-in costs 2,500 Preparation and installation costs 3,900 Labor costs during regular production operation 10,200 Credit terms 2/10, n/30 Total productive output 138,500 units The company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille, Inc., intends to use the machine only eight years, after which it expects to be able to sell it for P9,800. The invoice for Machine #204 was paid April 10, 2021. The number of units produced in 2021 and 2022 were 23,200 and 29,000, respectively. Reveille computes depreciation to the nearest whole month. Required Compute the depreciation for the years indicated, using the following methods (round your answer to the nearest peso): 2021: Units of productions 2022: Sum-of-the-years’- digits method

Pigs-R-Us is trying to decide whether or not to automate their meat packing process. The machine costs $200,000, has a useful life of 10 years and a salvage value of $10,000. It will require a $60,000 overhaul after 5 years of use. The machine costs $9,000 per year to operate and maintain, but it will save the company $50,000 per year in labor costs. Pigs-R-Us has asked you to evaluate the economics of this purchase and tell them what do to. If their MARR is 14%, what would you recommend? Use External Rate of Return Method.

2. Foxx Company manufactures water sealant. This sealant is used to stop leaks in basement orin concrete retainer walls. In 2019 the company sold 1.6M gallons of sealant at price of P3.00per gallon with a variable cost per gallon of P1.50. The fixed costs were P1,550,000In 2020, new automated equipment will be used in production. This will increase fixed costsfor the year to P1,785,000. The variable cost per gallon has been estimated at P1.30 per gallon.The sales volume increased by 15% percent in 2020.Required:1. For 2019 compute the BEP in gallons and pesos.2. For 2020 compute the BEP in gallons and pesos.3. How much is the EBIT for 2019 & 20204.Using the cost and revenue data for 2019 consider each of the following situationsindependently:a. What is the effect on the break even point (in gallons) for the decrease in variable cost fromP1.50 to P1.30?b. What is the effect on the break even point for the increase in fixed costs of P235,000?

can you please help me answer this problem... Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: What is the depreciation expense per unit of production using the units-of-production depreciation?   What is the total depreciation expense at December 31, 2019, using units-of-production depreciation?   What journal entry is needed at the end of 2019 to record depreciation expense using straight-line depreciation?    What is the book value of the equipment at the end of 2020 using straight-line depreciation?   What is depreciation expense for the equipment…

Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 Year 1 2 3 4 5 6 Total 23456 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 2. Prepare a depreciation schedule for six years using the double-declining- balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value

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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 $77,800, the accumulated depreciation is $31,100, 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 $161,800. 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 $246,600   $246,600   Direct materials $84,000   $84,000   Direct labor 58,400   —   Power and maintenance 5,400   28,800   Taxes, insurance, etc. 1,900   6,500   Selling and administrative expenses 58,400   58,400   Total expenses $208,100…

shobha

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 $94,400, the accumulated depreciation is $37,800, 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 $196,400. 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 $299,200   $299,200   Direct materials $102,000   $102,000   Direct labor 70,800   —   Power and maintenance 6,600   34,900   Taxes, insurance, etc. 2,400   7,800   Selling and administrative expenses 70,800   70,800   Total expenses $252,600…

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 $80,700, the accumulated depreciation is $32,300, its remaining useful life is 5 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 $167,900. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:   PresentOperations   ProposedOperations   Sales $255,800   $255,800   Direct materials $87,200   $87,200   Direct labor 60,500   —   Power and maintenance 5,600   29,900   Taxes, insurance, etc. 2,000   6,700   Selling and administrative expenses 60,500   60,500   Total expenses $215,800   $184,300…

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SCRAP or REWORK Seko Company has 5,000 obsolete truck parts that are carried in inventory at a cost of P50,000. The company is faced with a decision whether to scrap the parts or modify them:  If the parts were junked, the company would realize only 10% of its cost.  Should the company modify the parts, it will spend P10,000 for materials, P2,000 for direct labor, and overhead equal to 40% of prime costs. The new parts will sell for P25,000 in the market. REQUIREMENT:1. Should Seko Company modify or scrap the parts? Show solutions for the requirement.

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Each year in the United States nearly 5 billion pounds of discarded carpet end up in land fills. In response to this situation, a carpet manufacturer has decided to start a take-back program whereby obsolete carpet is reclaimed at the end of its useful life (about 7 years). The remanufactured carpet will then be recycled into the company’s supply chain. The out-of-pocket(variable) cost of recycling is $1.00 per square yard of carpet, and the remanufactured carpet can be sold for $3.00 per square yard. If the recycling equipment costs $1 million and has no market value at the end of its eight-year life, how much carpet must be remanufactured annually to make this a profitable undertaking? The company’s MARR is 15% per year.

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C16Q3 Need help  The studs are sold as​ rough-cut lumber after emerging from the sawmill operation without further processing by Hoover Sawmill.​ Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized after emerging from the sawmill. This additional processing costs $120,000 per month and normally results in a loss of​ 10% of the units entering the process. Without this planing and sizing​ process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $60 per unit.

6 Franklin Moran manages the cutting department of Greene Gibson Company. He purchased a tree-cutting machine on January 1, year 2, for $430,000. The machine had an estimated useful life of 5 years and zero salvage value, and the cost to operate it is $90,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1, year 3, that would allow a 35 percent reduction in operating costs. The new machine would cost $270,000 and have a 4-year useful life and zero salvage value. The current market value of the old machine on January 1, year 3, is $210,000, and its book value is $344,000 on that date. Straight-line depreciation is used for both machines. The company expects to generate $233,000 of revenue per year from the use of either machine. Required a. Recommend whether to replace the old machine on January 1, year 3. b. Prepare income statements for four years (year 3 through year 6) assuming that the old machine is…