At the beginning of last year (2021), Richter installed a semi-auto machine for its production. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized machine. He was impressed with the production efficiency, and less labour intensive. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new model. In addition, he asked the company's accountant to provide him with cost data on the company's old model. This information is presented here. Purchase price Accumulated Depreciation Estimated useful life from now Depreciation method Annual operating costs other than depreciation: Variable Fixed Old $105,500 50,000 5 years Straight-line $35,000 25,000 New $255,000 0 5 years Straight-line $15,000 10,000 If the old elevator is replaced now, at the beginning of 2022, Richter Condos will be able to sell it for $35,000. What Richter should do and provide your incremental

At the beginning of last year (2021), Richter installed a semi-auto machine for its production. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized machine. He was impressed with the production efficiency, and less labour intensive. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new model. In addition, he asked the company's accountant to provide him with cost data on the company's old model. This information is presented here. Purchase price Accumulated Depreciation Estimated useful life from now Depreciation method Annual operating costs other than depreciation: Variable Fixed Old $105,500 50,000 5 years Straight-line $35,000 25,000 New $255,000 0 5 years Straight-line $15,000 10,000 If the old elevator is replaced now, at the beginning of 2022, Richter Condos will be able to sell it for $35,000. What Richter should do and provide your incremental

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job #10 in August 2017. A total of 46 units were started, and 6 spoiled units were detected and rejected at final inspection, yielding 40 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,100 per unit. The current disposal price of the spoiled units is $235 per unit. When the spoilage is detected, the spoiled goods are inventoried at $235 per unit. . Assume that Job #10 of Jellyfish Machine Shop generates normal scrap with a total sales value of $700 (it is assumed that the scrap returned to the storeroom is sold quickly). Prepare the journal entries for the recognition of scrap, assuming The value of scrap is material, is related to a specific job, and is recognized at the time of sale.
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