Samawah refinery purchaseda machine and the following costs were incurred: Cash price IQD 30000 and Insurance during transit IQD 2000 and Installation IQD 1000, The amount should be recorded at the cost * :of the machine is 30000 32000 O 33000 none of all the above O

Samawah refinery purchaseda machine and the following costs were incurred: Cash price IQD 30000 and Insurance during transit IQD 2000 and Installation IQD 1000, The amount should be recorded at the cost * :of the machine is 30000 32000 O 33000 none of all the above O

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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Kindly answer the no. 4 question. Thank you
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BH is considering the manufacture of a new product which requires the use of both a new machine and existing machine. The following information has been prepared: (a) - current purchase price - residual value end Year 5 New Machine 2$ 450,000 30,000 (b) Existing Machine - cost 2 years ago - current written down value - current disposal value - residual value end Year 5 2$ 240,000 180,000 100,000 NIL The existing machine has sufficient spare capacity for the manufacture of the new product with no alternative use (c) New Product - life 5 years. Sales, 15,000 units per year at $ 46 per unit Cost per Unit Material Direct Labour, 2 hours at $ 8 per hour Variable overhead 16 4 Fixed overhead 10 (including depreciation of the new machine) (d) working capital required $ 45,000 immediately, it will remain at $ 45,000 during the Years 1 to 5 (e) direct labour is in short supply. It would need to be diverted from other work currently earning a $ 4 per hour (f) proceeds from the disposal of the…
S. The cost of platinum to be purchased to mpport August production is: A S198,000 B. $200,160 C. S195,840 D. S391,680 E None of the answers are corect
Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Annual operating costs O $66000 Old Equipment New Equipment $225000 $500000 $(91000) $94000* O $(26000) 94000 316000 -0- If the old equipment is replaced now, it can be sold for $66000. Both the old equipment's remaining useful life and the new equipment's useful life is 6 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is 248000
The workshop equipment that costs $4675, has a life of 11 years and no salvage value. The capitalized cost in dollar if money worth 10% is: 4860.28 O 9535.28 O 6029.03 O 7197.78 O 11171.53
Give Correct answer please
KA. GG Shipping is a shipping line which treats its ships as complex non-current assets. The cost and other details of one of its ships are: GHS’000 estimated life Exterior structure – purchase date 1 April 2008 120,000 Interior cabin fittings – replaced 1 April 2018 25,000 Engines (5 at GHS9 million each) – replaced 1 April 2018 45,000 No residual values are attributed to any of the component parts. 20 years 5 years 36,000 sailing hours At 1 April 2021 the ship log showed it had sailed 10,800 hours since 1 April 2018. In the year ended 31 March 2022, the ship sailed for 1,200 hours for the six months to 30 September 2021 and a further 1,000 hours in the six months to 31 March 2022. On 1 October 2021 the ship suffered a ‘collision’ an accident which damaged one of the engines beyond repair. This was replaced by a new engine with a life of 36,000 hours at cost of GHS10·8 million. Another engine was also damaged, but was repaired at a cost of GHS3 million; however, its remaining…
A new machine with a purchase price of $87,345, with transportation costs of $8,787, installation costs of $6,059, and special acquisition fees of $2,677, would have a cost basis of a.$93,404 b.$96,081 c.$87,345 d.$104,868+
Q/ A contractor purchase an equipment with a delivered price of (750000$) to operate it in one of his projects. He estimate the cost of this equipment according to the following justification - Total interest rate (including bank interest, storage, insurance, .) =15 % Consumption of (oil, fuel, and grease) =(8.25 S/hr) - Cost of maintenance and repair = 60% of the annual straight line depreciation - salvage value = 150000 S Useful life = (10 years) with (1400 hours used per year). a- Determine the probable cost per hour according to the previous justification. b- After (7 years) of operating the equipment, the contractor recorded all the costs of the equipment as shown in the table blow. He notice the increment in the average consumption and maintenance in the last two years (the 6", and 7th years). Calculate the average cost per hour of the equipment for the first five years, according to the salvage value of the equipment at the end of the 5th year = (200000$). Fuel oil Grease…
(a) Niasha Stores recently imported an item of plant from Grenadines Plants Ltd. The following information has been made available with regards to the purchase: Details $ Basic list price 3,000,000 Other costs: Transportation and handling 100,000 Pre-production testing 200,000 Holding structure for plant 350,000 Electrical inputs for plant 120,000 Own labour costs 250,000 Estimated maintenance costs for 5 years 300,000 The plant is expected to be useful for 8 years. At the end of this time, it will cost $180,000 to dismantle the plant and $140,000 to restore the site to its original state and use. Trade discount applicable to the purchase of the plant was 15% on the list price. Niasha Stores had made an error in purchasing electrical inputs amounting to $20,000. This cost was included in the above figure. In order to get the plant into the country Niasha Stores was charged 20% import duties on the basic list price. Niasha…
An engineer has received two bids for an elevator to be installed in a new building. Given a 10% interest rate, which bid should be accepted? Alternatives Installed cost Annual cost Salvage value Life, in years Westinghome $45,000 2700 3000 10 Itis $54,000 2850 4500 15