7. Equipment costing PIM is expected to produce 10. 000 pieces of pipes dur ing its economic life before being replaced. Annual production of this equipment is 2, 500 pipes. The equi pment' s scrap value is estimated at P50, 000. The cost of housing the equipment is P25, 000 per year. Costs of power and maintenance per unit are P9. 00 and P7. 00, respectively. Cost of labor is P35. 00 per unit. Use sinking fund method of depreciation with = 12% a. What is the total fixed cost? b. What is the variable cost per unit? c. What is the total cost of production per unit?
Q: 1. How to calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par. Expec...
A: Cash Flow at the time of maturity = 1000 Interest (Annuity) semiannually = (1000 * 2%)*6/12 = 10 ...
Q: Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturi...
A: A balance sheet is a financial statement that shows the assets, liabilities, and shareholder equity ...
Q: Parts manager's salary and benefits $29,920 Office employee's salary and benefits 33,000 13,200 Othe...
A: The question is based on the concept of Cost Accounting.
Q: Han Qing-Jao is exporting from Taiwan to the United States for the first time and she is concerned a...
A: Currency risk means is known as exchange rate risk. Currency risk means change in one currency in re...
Q: As a fraud investigator, why you should be concerned about fraud trials as a result of resolving a f...
A: Answer:- Fraud investigator :- Fraud investigator is that person who investigates the alleged fraud...
Q: A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in ac...
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account...
Q: For this question, the inflation rates are actual inflation levels (so a 6-month inflation rate incr...
A: The nominal payment for each time is equal to the value of the coupon payment and the inflation-adju...
Q: Assume no other adjusting entries are made during the year. a. Unearned Rent Revenue. The Krug Compa...
A: Unearned Rent Revenue: It is a liability account, with its regular balance on the credit side, while...
Q: Paul’s Pool Service provides pool cleaning, chemical application, and pool repairs for residential c...
A: A budget is the statement of expected future expenses and revenues for a specific period of time. Bu...
Q: Jackson Company produces plastic that is used for injection-molding applications such as gears for s...
A: The income statement is prepared to record the revenues and expenses of the current period. The net ...
Q: Cash $ 30,000 Marketable securities $ 25,000 Accounts Receivable Invento...
A: The balance sheet is a statement of assets, liabilities and stockholders' equity at a particular dat...
Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share....
A: Common Stock - Common Stock is the stock issued to the common shareholder's of the company.
Q: I'm not understanding this. Can someone please help and explain? THANK YOU! An inter vivos trust w...
A: Journal Entries- Journal entries refer to the authoritative book of a business which is used to reco...
Q: Record the sale of the equipment under the following three separate cases assuming Garcia sells the ...
A: Solution:- Preparation of journal entries three different cases as follows under:-
Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $60,500 are re...
A: Cash flow on retirement of bond On retirement of bond there is cash outflows from financing activiti...
Q: Big Trucks INC. is a company that provides car rental services. The company's fleet is mostly made u...
A: Replacement cost is the cost that is incurred by the company by replacing the old asset with the new...
Q: A company XYZ is into the manufacturing of kid toys. They manufacture different kinds of small or bi...
A:
Q: a. Show the accounting entries that you would make to record depreciation on tractors of R20 000, wh...
A: Introduction: Depreciation: Decreasing value of fixed Assets over its useful life period called as d...
Q: Question 5 Breakeven point Product 1 Product 2 Product 3 Product 4 Product 5 11 11 20 11 14 Selling ...
A: Lets understand the basics. Break even point is a point at which no loss no profit contribution aris...
Q: The debits to Work in Process—Assembly Department for April, together with data concerning productio...
A: Conversion costs are costs related with the conversion of raw materials into finished goods. It incl...
Q: Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense...
A: Contribution margin = Sales - Variable cost = $140 - $70 = $70 per unit Contribution margin ratio ...
Q: The following data are available for Segment X of XYZ Company: Net income of the segment $50,000 Con...
A: Income or Financial performance: Using financial performance as a subjective indicator, we can deter...
Q: sells a line of product that are sold usually all year round. The company has a maximum production c...
A: The question is related to Cost Volume Profit Analysis. The Basic equation of Cost Volume Profit Ana...
Q: Statement of Financial Position February 28, 2021 (Expressed in Jamaica dollars unless otherwise sta...
A: (1) Debt - to - equity ratio = Debt / Equity Debt = Long term debt = Non- current liabilities Equi...
Q: On November 30, 2019, Davis Company and the following account balances: 1. Prepare general journal e...
A: Journal entries (JE) refers to the original books of accounts which reports the daily transaction of...
Q: A "balanced transaction" (DR=CR) is a guarantee that a transaction has beer recorded 100% correctly....
A: Correct answer if 'False'
Q: a) Calculate each of the missing values. b) Comment on each company's performance in relation to the...
A: Ratio analysis refers to an overview of the company’s performance by calculation various ratio using...
Q: A high-definition TV costs a company $3,100 to manufacture, If it sells for $6,742, what is the perc...
A: Solution: Markup is the difference between the selling price of a good or service and cost. It is ge...
Q: Raw material = Rp. 150.000 Labor cost = Rp. 60.000 Overhead variable cost = Rp 90.000 Fixed S&A cost...
A: Total variable cost = Rp150,000 + Rp60,000 + Rp90,000 + Rp30,000 ...
Q: PUMASA AKO Company and its subsidiaries own the following properties that are accounted for in accor...
A: IAS 40 Investment Property applies to the accounting for property i.e. land or buildings or both whi...
Q: Boe Corporation's stockholders' equity at December 31, 2008 was as follows: 6% noncumulative prefere...
A: Book Value per ordinary share = (Ordinary Share Capital + Retained Earnings)/ Number of Ordinary Sha...
Q: assets consisted of $63,800 Cash; $45,700 Accounts Receivable; and $74,500 of Inventory. The acid-te...
A: Acid Test ratio = Quick Assets/ Current liabilities Acid test ratio = $ 109,500/ $ 127,500 Acid test...
Q: Record adjusting journal entries for each of the following for year ended December 31. Assume no oth...
A: Solution: Adjusting entries are those entries which are required to be prepared to match the revenue...
Q: A machine with a cost of $141,000 and accumulated depreciation of $90,500 is sold for $61,000 cash. ...
A: Cash flow statement provided information about the cash inflows and cash outflows of the company. Ca...
Q: Strategy Telecom (ST) made one of the largest single purchase of long-distance telephone time in ST ...
A: Ans. Rp1,200,000
Q: uppose that the government has a wealth tay at the rate of 2% on the assessed value of wealth
A: Wealth tax is tax on wealth . In USA there is estate tax rathe...
Q: Carson Manufacturing, Inc., sells a single product for $34 per unit. At an operating level of 8,000 ...
A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.
Q: A company uses a process costing system. Its Assembly Department started the month with 3,000 units ...
A: 67,500 Explanation: Transferred out = Beginning work in process + Transferred in - Ending work in pr...
Q: Ash Company reported sales of $550,000 for Year 1, $600,000 for Year 2, and $650,000 for Year 3. Usi...
A: Trend percentages are used to compare two or more financial percentages. These trend are used to pre...
Q: Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 an...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: you to review the two financial statements below and give your analysis of the company’s performance...
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and ...
Q: Cost of Goods Sold Gross Sales Net Ending Profit Beg Inventory Purchases Inventory Net Sales returns...
A: Net sales is calculated as adjustment to gross sales for sales discounts and sales returns.
Q: Fasani produces premium bottled water. Fasani purchases artesian water, stores the water in large ta...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Whispering Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning D...
A:
Q: Timmer Company signs a lease agreement dated January 1, 2019,that provides for it to lease equipment...
A: Lease refers to the contractual agreement where user pay the owner for using the asset and the asset...
Q: The X division of XYZ Company is currently operating at 60% capacity or 6,000 units. It produces a s...
A:
Q: Shadee Corp. expects to sell 560 sun visors in May and 330 in June. Each visor sells for $21. Shadee...
A: The selling and administrative expenses budget is prepared to record the estimated selling and admin...
Q: Tammy is single and owns and operates ABC, LLC. Her LLC (a sole proprietorship) has QBI of $850,000 ...
A: According to the rule, the QBI is limited to below options whichever is lower: (A) 20% of QBI OR (B)...
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800...
A: The income statement is one of the important financial statement of the business which records the r...
Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end ...
A: Date Account Titles and Explanation Debit Credit Dec'31 Accrued Interest on Note $ 50...
Step by step
Solved in 3 steps
- The equipment needed to manufacture a product costs $1,000,000 to purchase. This equipment has a life of 5 years and a salvage value of $100,000. Fixed costs for this equipment are $50,000 per year while variable costs are $200 per unit of finished product. Assuming that an annual interest of 6% is used to account for the time value of money: (a) Find the equivalent uniform annual cost associated with this equipment when 10,000 units of finished product are produced each year. (b) Now suppose that each unit of finished product generates $300 in revenue. How many units need to be produced each year in order to break even on this equipment?The equipment needed to manufacture a product costs $1,000,000 to purchase. This equipment has a life of 5 years and a salvage value of $100,000 Fixed costs for mis equipment are $50.000 per year while variable costs are $200 per unit of finished product. Assuming that an annual interest of 9% is used to account for the time value of money (a) Find the equivalent uniform annual cost associated with this eqaipment when 10.000 units of finished product are produced each year. (b) Now suppose that each unit of finished product generates $300 in revenue How many units need to be produced each year in order to break even on this equipment?Two costs for construction of a small, remote mine are for labor and transportation. Labor costs are expected to be $350,000 the first year, with inflation of 6% annually. Unit transportation costs are expected to inflate at 5% annually, but the volume of material being moved changes each year. In Time-0 dollars, the transportation costs are estimated to be $40,000, $60,000, $50,000, and $30,000 in Years 1 through 4. The inflation rate for the value of the dollar is 3%. If the firm uses an i′ of 7%, what is the equivalent annual cost in Time-0 dollars for this 4-year project?
- A new process for manufacturing laser levels will have a first cost of $40,000 with annual cost o f$17,000. Extra income associated with the new process is expected to be $22,000 per year. Determine the payback period at:. (A) i= 0% (B) i= 10% per yearA packing equipment that cost P 500,000 will last for 20 years and have a scrap value at that time of P 50,000. Repair will average P 30,000 per year in which the operating expenses to include the operator will be P 20,000 per month. The second packaging equipment will produce twice as many units per year. It costs P 1,500,000 and must be replaced at the end of 25 years at a cost of P 1,000,000. Repairs for this many will average P 25,000 per year and operating expenses will be P 30,000 a month. If money is worth 8% effective, what is the rate of return (%) of the additional investment?A manufacturing plant produces 5,000 units per year. The capital investment, annual expenses, salvage value, and reject rate are as follows: Capital investment $ 100,000 Useful life (years) 7 Annual expenses $ 15,000 Salvage value $ 7000 Reject rate 8.5% Non-defective units can be sold for $5 per unit and defective units can be sold for $1 per unit. The MARR = 9%. Use at least 3 decimal places for each factor. A- Find the PW for this project? B- Determine how sensitive the decision to invest in this project to the estimates of initial investment and salvage value?
- A coal fired Power plant with 30,000 kw rated capacity costs P 15,000 per kw installed. Annual operating cost, P 12 million; annual maintenance cost, P 8 million; annual depreciation, P 15 million; interest on investment per year, 8%; cost of coal, P 800 per ton. If one pound of coal is needed to generate 1 kwh, find the total annual cost to operate the plant assuming plant capacity factor of 50%.An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life?The estimated cost of a completely installed andready-to-operate 40-kilowatt generator is $32,000. Itsannual maintenance costs are estimated at $800. Theenergy that can be generated annually at full load isestimated to be 100,000 kilowatt-hours. If the valueof the energy generated is $0.09 per kilowatt-hour,how long will it take before this machine becomesprofitable? Take the MARR to be 10% and the salvage value of the machine to be $2,000 at the end ofits estimated life of 15 years.
- Elearning Company would like to develop its technology process by purchasing a production equipment for 11.2 million HUF. The equipment is expected to have a useful life of 5 years, and will be sold at the end of 5 years for 2.5 million HUF. The annual operating costs are predicted to be 1.5 million HUF. The estimated revenues are in yearly sequence ( HUF) 5.2 million; 5.5 million; 6.1million; 7 million; 7.5 million. The company's required rate of return is 12 percent. You can see the way of the economic efficiency calculation in the table. Some of the data are missing. Enter the missing data in the table. Perform further calculations and explain the results obtained. Data Year O Year 1 Year 2 Year 3 Year 4 Year 5 Pt (M HUF) 5.2 5.5 6.1 7 kt (M HUF) 1.5 1.5 1.5 1.5 1.5 Et (M HUF) 11.2 CFt (M HUF) -11.2 3.7 4 4.6 5.5 8.5 Dt 1 0.89286 0.79719 0.63552 0.56743 CFt*Dt (M HUF) -11.20 3.30 3.19 3.27 4.82 ECF**Dt (M HUF) -11.20 -7.90 -4.71 -1.43 2.06 The NPV of the project is million HUF.An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.The textile factory is being upgraded. The expectation is that labor costs will decrease at an annual rate of 5% while overhead costs will increase at 8%. Now by the end of the first year the Labor costs $2million Material costs $3 million Overhead costs 1.6 million The time value of money rate is 11% and the time horizon is 7 years. Determine the dollar value for each cost category (labor, material, overhead) for each year and the total cost for each year. Determine the present worth of each cost category and the total cost. Determine the annual worth over 7 years that is equivalent to the present worth of the total cost.