Gadubhai Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1:$ 83,200$7,000$ 3,000Purchase priceDelivery costInstallation chargeEstimated life.Estimated unitsSalvage estimate5 yearsa. Straight-lineb. Double-declining-balancec. Units of production147,000$ 5,000During Year 1, the machine produced 43,000 units and during Year 2, it produced 45,000 units.RequiredDetermine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods:Year 1Year 2

DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life. Estimated units Salvage estimate $ 83,200 $7,000 $ 3,000 a. Straight-line b. Double-declining-balanc c. Units of production 5 years 147,000 $ 5,000 During Year 1, the machine produced 43,000 units and during Year 2, it produced 45,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Year 1 Year 2

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life. Estimated units Salvage estimate $ 83,200 $7,000 $ 3,000 a. Straight-line b. Double-declining-balanc c. Units of production 5 years 147,000 $ 5,000 During Year 1, the machine produced 43,000 units and during Year 2, it produced 45,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Year 1 Year 2

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 17MCQ: Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard...

See similar textbooks

Similar questions

A machine costs 9,250 with a trade in value of 710. Th machine can produce 26,800 unitsand the annual production has been:1st year 3,600 units2nd year 4,980 units3rd year 8,755 units4th year 6,000 unitsFind the yearly depreciation (units of Production methods)
Sirotka Retail Company began doing business in 20X1. The following information pertains to its first three years of operation: Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Purchases Sales Operating Expenses $60,000 90,000 65,000 Unit Unit Year Units Cost Units Price $ 35 15,000 $20.00 20,000 5,000 20X1 12,000 18,000 10,000 20X2 25.00 40 20X3 30.00 40 Assume the following: • The income tax rate is 21%. • Purchase and sale prices change only at the beginning of the year. • Sirotka uses the LIFO cost flow assumption. • Operating expenses are primarily selling and administrative expenses. Required: 1. Compute cost of goods sold and the cost of ending inventory for each of the three years. 2. Prepare income statements for each of the three years. 3. Compute the LIFO reserve at the end of 20X1, 20X2, and 20X3. 4. Compute the effect of LIFO liquidation on the net income…
Hagrid Gardening Corporation manufactures gardening products. The following information relates to the current period: DM Purchased $14,900 DM Inventory, Jan 1 $12,700 DM Inventory, Dec 31 $16,100 DL $6,400 MOH $16,700 Period Costs $10,500 WIP Inventory, Jan 1 $2,500 WIP Inventory, Dec 31 $8,000 FG Inventory, Jan 1 $19,500 FG Inventory, Dec 31 $4,800 A total of 5,000 products were sold for $25 each. Based on this information, please calculate the following: Total manufacturing costs?
Hagrid Gardening Corporation manufactures gardening products. The following information relates to the current period: DM Purchased $14,900 DM Inventory, Jan 1 $12,700 DM Inventory, Dec 31 $16,100 DL $6,400 MOH $16,700 Period Costs $10,500 WIP Inventory, Jan 1 $2,500 WIP Inventory, Dec 31 $8,000 FG Inventory, Jan 1 $19,500 FG Inventory, Dec 31 $4,800 A total of 5,000 products were sold for $25 each. Based on this information, please calculate the following: Operating Income?
Hagrid Gardening Corporation manufactures gardening products. The following information relates to the current period: DM Purchased $14,900 DM Inventory, Jan 1 $12,700 DM Inventory, Dec 31 $16,100 DL $6,400 MOH $16,700 Period Costs $10,500 WIP Inventory, Jan 1 $2,500 WIP Inventory, Dec 31 $8,000 FG Inventory, Jan 1 $19,500 FG Inventory, Dec 31 $4,800 A total of 5,000 products were sold for $25 each. Based on this information, please calculate the following: Cost of Goods Sold?
A machine costs 9,250 with a trade in value of 710. Th machine can produce 26,800 units and the annual production has been: 1st year 3,600 units 2nd year 4,980 units 3rd year 8,755 units 4th year 6,000 units Find the yearly depreciation on the 3rd year (units of Production methods) O A. 2,789.84 B. 1,586.91 O c. 1,147.16 D. 1,911.94
1
Jefferson Print Supplies, Inc., sells laser printers and supplies. Assume Jefferson started the year with 100 containers of ink (average cost of $9.10 each, FIFO cost of $8.40 each, LIFO cost of $7.90 each). During the year, the company purchased 800 containers of ink at $10.00 and sold 600 units for $20.00 each. Jefferson paid operating expenses throughout the year, a total of $3,900. Ignore income taxes for this exercise. Prepare Jefferson's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.) Sales revenue Cost of goods sold Gross profit Operating expenses Net income Jefferson Print Supplies, Inc.…
please avoid answers in image fromat thank you
Carson Print Supplies, Inc., sells laser printers and supplies. Assume Carson started the year with 100 containers of ink (average cost of $8.90 each, FIFO cost of $9.00 each, LIFO cost of $7.80 each). During the year, the company purchased 800 containers of ink at $9.80 and sold 600 units for $21.50 each. Carson paid operating expenses throughout the year, a total of $4,000. Ignore income taxes for this exercise. Prepare Carson’s income statement for the current year ended December 31 using the aver-age-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading.
A machine costs 9,250 with a trade in value of 710. Th machine can produce 26,800 units and the annual production has been: 1st year 3,600 units 2nd year 4,980 units 3rd year 8,755 units 4th year 6,000 units Find the book value on the 3rd year (units of Production methods) O A. 5,523.91 B. 6,515.93 O c. 3,726.09 O D. 1,814.15
Please dont give solutions in an image thanku