Department of AccountingInternational accounting course1,800,000 and fair value of 2400,000, with an expected life of 10 years.The contributions of each company were as iunincorporated joint operation to design specialised tools, which is called SmartToolsto be used in the making of high grade mining instruments. It was agreed that theQuestion one : on the 1.luly 2013, two companies agreed to form anrelative joining operation would be:Company nameStafford LtdInterest20%Tutbury Ltdfollow:Stafford Ltd provided piant to SmartTool with a carrying value of• Tutbury Ltd provided cash of 1600,000.Information from SmartTools financial statement as at 30 June, 2014 is as follows:95,0001200,000(120,000)1800,000(200,000)163,000160,000550,000CashEquipmentAccumulated depreciation - equipmentPlantAccumulated depreciation - plantRaw materialWork in processInventoryTotal assets3648,000100,000248,000740,000Account payableAccrualsexpensesBank loan1088,0002560,000Total liabilitiesNet assetsCost of inventory1990,000Required:Prepare the necessary entries at the beginning and the end of financial year atthe books of the two companies. DateStafford LtdTutbery1/07/201330/06/201430/06/2014Foraccumulateddepreciation

In this question, 2 companies i.e. Stafford Ltd and Tutbury Ltd are forming a joint operation named…

Answered: nies agreed to form an joint operation…

nies agreed to form an joint operation to design specialised tools, which is called SmartTools making of high grade mining instruments It u making of high grade miningg instruments It nor

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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Identify relevant costs for different E23.18 (LO 1, 2, 3, 4, 5, 6) The costs listed below relate to a variety of different decision situations. decisions. Cost Decision Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Eliminate an unprofitable segment (manager will be terminated) Equipment replacement Sell or process further Equipment replacement (the amount of materials required does not change) Purchase or lease a building 1. Unavoidable fixed overhead 2. Direct labor 3. Original cost of old equipment 4. Joint production costs 5. Opportunity cost 6. Segment manager's salary 7. Cost of new equipment 8. Incremental production costs 9. Direct materials 10. Rent expense Problems: Set A 23-33 Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explain why.
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help me to answer with supportin gcomputation What is the total amount of costs that will be expensed when incurred?
A plastic-manufacturing company owns andoperates a polypropylene production facility that converts the propylene from one of its cracking facilitiesto polypropylene plastics for outside sale. The polypropylene production facility is currently forced tooperate at less than capacity due to an insufficiencyof propylene production capacity in its hydrocarboncracking facility. The chemical engineers are considering alternatives for supplying additional propyleneto the polypropylene production facility. Two feasiblealternatives are to build a pipeline to the nearest outside supply source and to provide additional propylene by truck from an outside source. The engineersalso gathered the following projected cost estimates.• Future costs for purchased propylene excludingdelivery: $0.215 per lb.• Cost of pipeline construction: $200,000 per pipeline mile.• Estimated length of pipeline: 180 miles.• Transportation costs by tank truck: $0.05 per lb,utilizing a common carrier.• Pipeline operating…
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