Cosmo manufacturing record for the new machine Cosmo Manufacturing buys a new machine with a list price of$60,000 plus a 10% sales commission. Shipping costs are $900 FOBDestination. Installation costs are $1,500. What cost does CosmoManufacturing record for the new machine?a. $57,000b. $60,000c. $66,000d. $67,500e. $68,400

Explanation of List Price:The list price is the manufacturer's or retailer's advertised price for a…

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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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18. C ompany ABC buys a new machine with a list price of $50,000 plus an 8% sales commission. Shipping costs are $800 FOB Destination. Installation costs are $1000. What cost does Company ABC record for the new machine?: * O a. $47,000 O b. $50,000 O c. $54,000 d. $55,000 e. $55,800 19. Acme Company ages its accounts receivables based on the following schedule: Number of Days Past Due Not Due 1-30 31-90 Over 90 Total accounts receivable 30,000 20,000 10,000 5,000 Estimated % uncollectible 3% 5% 15% 30% If Acme's trial balance shows Allowance for Doubtful Accounts with a credit balance of $400, what adjusting entry is necessary for the Allowance for Doubtful Accounts?: * Oa. $1,500 O b. $3,400 O c. $4,500 d. $4,900 e. $5,300 20. Which of the following is defined as sales minus cost of goods sold?: * a. Net income Ob. Operating income c. Retained earnings Od. Income from continuing operations Oe. Gross profit 21. Which tax is displayed on the Income statement?: * O a. Sales tax O b.…
A chip manufacturer makes video gaming chip that can be sold for $50. The chip material cost is $15 for each chip. The operations costs of the chip manufacturer (administration etc.) is $100000. The chip manufacturing machinery costs $500000 that is depreciated over 10 years to a salvage value of zero. a) What is the accounting breakeven level of sales in terms of number of chips sold? b) b. What is the NPV breakeven level of sales assuming a tax rate of 35%, 10-year project life and a discount rate of 12%.
To make an item inhouse, equipment costing $250,000 must be purchased. It will have a life of 4 years, an annual cost of $80,000, and each unit will cost $40 to manufacture. Buying the item externally will cost $100 per unit. At i = 15% per year, it is cheaper to make the item inhouse if the number per year needed is:a. above 1047 unitsb. above 2793 unitsc. equal to 2793 unitsd. below 2793 units
Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67
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Stone Manufacturing sells a marble slab for $1.500 Fixed costs are 130,000, while the variable costs are $500 per wish. The company currently plans to sell 100 sise this month. What is the margin of safety assuming 75 slabs are actually sold? (Round a unit calculations up to the rarest whole nutter) A $30,000 B. $102,000 C. $64,500 D. $47,000 Only typing answer Please explain step by step
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A company is going to buy a new equipment for manufacturing itsproduct. Four different equipment’s are available; costs, operating and otherexpenses are as follows:Equipment A B C DFirst Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000Power per year Php 1300 Php 1360 Php 2400 Php 2520Labor per year Php 10,600 Php 9320 Php 4200 Php 2700Maintenance/year Php 2800 Php 1900 Php1300 Php 700Taxes & Insurance 2% 2% 2% 2%Life; years 5 5 5 5 Money is worth 10% before taxes to the company. Which equipment shouldbe purchased ? Choose which method is applicable.
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Your boss has told you to evaluate the cost of two machines.After some questioning, you are assured that they have thecosts shown at the right. Assume:a) The life of each machine is 3 years.b) The company thinks it knows how to make 14% oninvestments no riskier than this one.Determine via the present value method which machine topurchase. MACHINE A MACHINE BOriginal cost $13,000 $20,000Labor cost per year 2,000 3,000Floor space per year 500 600Energy (electricity) per year 1,000 900Maintenance per year 2,500 500Total annual cost $ 6,000 $ 5,000Salvage value $ 2,000 $ 7,000

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Cosmo Manufacturing buys a new machine with a list price of $60,000 plus a 10% sales commission. Shipping costs are $900 FOB Destination. Installation costs are $1,500. What cost does Cosmo Manufacturing record for the new machine? a. $57,000 b. $60,000 c. $66,000 d. $67,500 e. $68,400