not included as R&D costs.?Assessment TasksAssessment Tasks 9.1 (Bazley et al., 2010)1. The Befort Company field for a patent on a new type of machine. The application coststotaled P12,000. R&D costs incurred to create the machine were P75,000. In the year inwhich the company filed for and received the patent, it spent P20,000 in the successfulde fense of a patent infringement suit.Required1. At what amount should the company capitalize the patent?2. How would you determine the economic life of the patent?2. On January 4, 2021, the Franc Company purchased for P27,000 a patent that had beenfiled eight years earlier. The patent covers a manufacturing process that the companyplans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 forsuccessfully defending the patent in a lawsuit.28RequiredPrepare all the journal entries associated with the patent in 2021 and 2022.3. On January 11, 2022, The Hughes Company applied for a tradename. Legal costsassociated with the application were P20,000. In January 2023, the ompany incurredP8,000 of legal fees in a successful defense of its tradename. The tradename was notimpaired in 2022 and 2023,RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should thecompany amortize the tradename?4. The KLK Clothing Company manufactures professionals clothing for women. In order tokeep costs low while still producing quality clothes, KLK conducts many research anddevelopment projects. On a current project KLK researchers used P35,000of cotton andP27,000 of wool from its inventory. KLK paid its researchers P30,000 in wages andpurchased a special weaving machine for P60,000 cash. The machine was not suitablefor use in production activities and was not expected to be used in other researchprojects. In addition, depreciation of the project's research lab amounted to P20.000.RequiredPrepare the journal entry to record KLK's research and development costs.5. In 2020, Lalli Corporation incurred R&D costs as follows:Materials and equipmentP100,000Personnel100,000Indirect costs50,000P250,000These cost relate to a product that will be marketed in 2021. The Company estimates thatthese costs will be recouped by December 31, 2024.Required29

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Materials and equipment P100,000 Personnel 100,000 Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024. Doguirod

Materials and equipment P100,000 Personnel 100,000 Indirect costs 50,000 P250,000 These cost relate to a product that will be marketed in 2021. The Company estimates that these costs will be recouped by December 31, 2024. Doguirod

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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Q47 Mixing Company manufactured 1,600 units of its only product during 2022. The inputs for this production are as follows: 460 pounds of Material A at a cost of $1.60 per pound 310 pounds of Material H at a cost of $2.85 per pound 340 direct labor hours at $24 per hour The firm manufactured 1,620 units of the same product in 2021 with the following inputs: 540 pounds of Material A at a cost of $1.20 per pound 370 pounds of Material H at a cost of $2.50 per pound 420 direct labor hours at $22 per hour In 2021, the partial financial productivity of Material A is: Multiple Choice 0.27. 0.23. 2.50. 2.78. 3.00.
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
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Question 1 A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales for the first five months of 2022 have been estimated as: Month Units January 210 000 February 180 000 March 210 000 April 220 000 May 200 000 Additional Information: i. Actual units sold in 2021 November and December were 190 000 and 220 000, respectively. ii. One unit of blitz requires 2 kg of material at $3.50 per kg. iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour. iv. Based on past experience, 60% of cash is received in the month of sale, 25% the following month, 10% two months after and 5% is usually irrecoverable. V. Selling price is $18 per unit. vi. The company intends to have finished stock at the end of each month equivalent to 15% of the following month's budgeted sales. The policy regarding stock of raw materials is to have 25% of the following month's production requirements. vii. Stocks at 2022 January 01 are estimated to be 22 000 units of…
Q.4 Standard cost systems provide companies with a number of advantages, argue the statement. Following are the details of Abbass Industries for the period ended June 30, 2020. Company establish standard on its normal capacity of 120,000 units/hours in a year: Direct Material 600,000 kgs at Rs. 9 per kg Direct Labor 4 hours per unit at Rs. 6 per hour Factory overhead: Fixed cost Rs. 240,000 per year or Rs. 20,000 per month. Variable Cost Rs. 4.50 per hour. During the one month of operation, company produced 11,000 units. Direct material used: 60,500 kgs at Rs. 9.10 per kg Direct labor used:…
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Q21 Mixing Company manufactured 2,200 units of its only product during 2022. The inputs for this production are as follows: 520 pounds of Material A at a cost of $2.20 per pound 370 pounds of Material H at a cost of $3.45 per pound 580 direct labor hours at $48 per hour The firm manufactured 2,268 units of the same product in 2021 with the following inputs: 540 pounds of Material A at a cost of $1.40 per pound 400 pounds of Material H at a cost of $2.70 per pound 450 direct labor hours at $18 per hour In 2021, the partial financial productivity of direct labor is: Multiple Choice 0.28. 5.04. 4.48. 0.25. 5.60.
Question 3: ( The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: Statements Total Costs Total variable production costs 780,000 Fixed manufacturing overhead 220,000 Total production costs 1,000,000 Total selling, general, and administrative expenses 400,000 Total costs and expenses 1,400,000 Units to be Produced 40,000. The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1,600,000 in producing. Instructions: a. Compute the price of (ZZ) using the Gross margin pricing method (^ b. Compute the price of (ZZ) using the Return on assets pricing method. c. Prepare income statement to support your answer. ·
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