Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 77,772,800 $240,720,000 revenue Research & Development $ 60,360,000 Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 77,772,800 $240,720,000 revenue Research & Development $ 60,360,000 Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be:

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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Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,500 and 500 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to Department B would be: a. $24,000 b. $28,800 c. $16,000 d. $67,200
Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind of technology to improve their operations. It has a useful life of 20 years and a salvage value of P500,000. However, on June 30, 2018, they decided to dispose it to liquidate some of its debts. Therefore, they classified it as held for sale. The fair value of the machine on that date P5,100,000 and the cost of disposal is P100,000. On November 30, 2019, the company decided again to continue to use it since they were able to obtain funding from their investors through follow-on offering of additional shares to pay their currently maturing obligations. On this date, the fair value of the machine is P4,900,000 and the cost of disposal is P50,000. How much is the gain or loss in the reclassification in 2019?
Gemma Company is a midsize manufacturing company with 120 employees and approximately $45 million in sales. Management has established a set of processes to purchase fixed assets, described in the following paragraphs: When a user department decides to purchase a new fixed asset, the departmental manager prepares an asset request form. When completing the form, the manager must describe the fixed asset, the advantages or efficiencies offered by the asset, and estimates of costs and benefits. The asset request form is forwarded to the director of finance. Personnel in the finance department review estimates of costs and benefits and revise these if necessary. A discounted cash flow analysis is prepared and forwarded to the vice president of operations, who reviews the asset request forms and the discounted cash flow analysis, and then interviews user department managers if he or she feels it is warranted. After this review, she selects assets to purchase until she has exhausted the…
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Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 86,000,000 $ 100,000,000 $ 54,000,000 $ 240,000,000 Research & Development $ 60,000,000 Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be: Multiple Choice $25,500,000. $20,500,000. $13,500,000. $6,500,000. $17,000,000.
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