Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Benson Corporation manufactures model airplanes. The company purchased for $166,000 automated production equipment that ca make the model parts. The equipment has a $12,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would mak on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit

Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Benson Corporation manufactures model airplanes. The company purchased for $166,000 automated production equipment that ca make the model parts. The equipment has a $12,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would mak on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit

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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PROBLEM NO. 3: A mixing plant having a capacity of 50 cu. m. every hour costs P2,500,000. It is estimated to process 800,000 cu. m. during its life. During a certain year it processed 60,000 cu. m. If its scrap value is P100,000, determine the total depreciation cost chargeable to each batch of 50 cu. m. using Service-Output-Method.
Exercise 14-43 (Algo) Impact of an Asset Disposal on Performance Measures (LO 14-2, 3) Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $43,260. Expected divisional income in year 1 is $55,440 including $2,940 in income generated by the machine (after depreciation). Veach's cost of capital is 10 percent. Veach is considering disposing of the asset today (the beginning of year 1). Required: a. Veach computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Veach retains the asset? b. What would divisional ROI be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1). sale? c. Veach computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1…
Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Rundle Corporation manufactures model airplanes. The company purchased for $143,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Depreciation Expense Credit Credit Manufacturing Overhead Debit Credit
Here is the information relating to the equipment of the company Production Inc: Purchase on January 1 X5 $ 100,000Estimated useful life 5 yearsEstimated residual value $ 10,000Total hours of intended use 10,000 hoursNumber of hours of use in X5 3,000 hoursNumber of hours of use in X6 2,500 hoursDeclining balance rate 35% If the Production company used the straight-line depreciation method for its equipment, the depreciation expense for year X6 would amount to: a) $ 18,000b) $ 22,500c) $ 25,000d) None of the abovee) $ 20,000
Exercise 14-07 National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect materials Depreciation on delivery equipment Dispatcher's salary $7,100 Drivers' salaries 12,300 5,260 910 13,000 2,600 Period costs Advertising Delivery equipment repairs Office supplies Office utilities Repairs on office equipment $16,200 5,400 390 720 1,060 220 Property taxes on office building CEO's salary Gas and oil for delivery trucks Determine the total amount of (a) delivery service (product) costs and (b) period costs. Delivery service (product) costs
All information included
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Indirect materials used Depreciation on delivery equipment Dispatcher's salary Property taxes on office building CEO's salary Gas and oil for delivery trucks Delivery service (product) costs $ Period costs $6,940 LA 12,040 5,400 980 12,960 2,320 Drivers' salaries Advertising Delivery equipment repairs Office supplies Determine the total amount of (a) delivery service (product) costs and (b) period costs. Office utilities Repairs on office equipment $17,280 5,080 324 702 1,080 206
Exercise 14-43 (Algo) Impact of an Asset Disposal on Performance Measures (LO 14-2, 3) Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $43,260. Expected divisional income in year 1 is $55,440 including $2,940 in income generated by the machine (after depreciation). Veach's cost of capital is 10 percent. Veach is considering disposing of the asset today (the beginning of year 1). Required: a. Veach computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Veach retains the asset? b. What would divisional ROI be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale? Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1). c. Veach computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1…
ework Assignment i Required information Exercise 8-10A (Algo) Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 8-3, 8-4, 8-5 [The following information applies to the questions displayed below] Year 1 Year 2 Year 31 Year 4 Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,020. The printer is expected to have a four-year useful life and a $3,600 salvage value. The expected print production is estimated at $1,778,100 pages. Actual print production for the four years was as follows. Total 548,700 479,800 384,500 385,100 1,798,100 Saved The printer was sold at the end of Year 4 for $3,800 Help Exercise 8-10A (Algo) Part a Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Save & Che