Answered: the atkins museum recently hired a new…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PB: Pocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized...

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Chilton Peripherals manufactures printers, scanners, and other computer peripheral equipment. In the past, thecompany purchased equipment used in manufacturing from an outside vendor. In March 2018, Chilton decidedto design and build equipment to replace some obsolete equipment. A section of the manufacturing plant was setaside to develop and produce the equipment. Additional personnel were hired for the project. The equipment wascompleted and ready for use in September.Required:1. In general, what costs should be capitalized for a self-constructed asset?2. Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?3. Under what circumstance(s) would interest be included in the cost of the equipment?
The City placed a sculpture of a woman holding a child over her head in Hawrelak Park. During a winter festival, the parks crew decided to string multi-coloured lights around it. The artist is upset by this modification to her work. The artist may be able challenge this modification by asserting these rights: Select one: a. moral rights. O b. industrial design rights. O c. patent rights. d. domain rights.
Last year (2016), Bramble Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company’s accountant to provide him with cost data on the company’s elevator. This information is presented below. Old Elevator New Elevator Purchase price $103,500 $159,000 Estimated salvage value 0 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,000 $11,000 Fixed 23,900 8,200 Annual revenues are…
St. John's Hospital has decided to move to a new location to better serve the surrounding community. The project involves constructing a new hospital and making it operational. Judy Kramer, the project manager for the St. John's Hospital project, divided the project into two modules. She assigned John Stewart the overall responsibility for the Organizing and Site Preparation module and Sarah Walker the responsibility for the Physical Facilities and Infrastructure module. The project team developed the precedence relationships, activity time estimates, and the activity responsibilities shown in the following table: T 1 Activity ST. JOHN'S HOSPITAL PROJECT START ORGANIZING and SITE PREPARATION A. Select administrative staff B. Select site and survey C. Select medical equipment D. Prepare final construction plans E. Bring utilities to site F. Interview applicants for nursing and support staff PHYSICAL FACILITIES and INFRASTRUCTURE G. Purchase and deliver equipment H. Construct hospital I.…
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversation regarding the development of a new information system for the company: CIO: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. MD: We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead, we get a modified version of the old system. CIO: I can assure you that this will not happen this time. My team just wants a thorough understanding of what is working well and what is not. MD: I would feel much more comfortable if we first started with a list of our requirements. We should spend more time determining what exactly we want the system to do upfront. Then your team can come in and…
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversation regarding the development of a new information system for the company: CIO: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. MD: We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead, we get a modified version of the old system. CIO: I can assure you that this will not happen this time. My team just wants a thorough understanding of what is working well and what is not. MD: I would feel much more comfortable if we first started with a list of our requirements. We should spend more time determining what exactly we want the system to do upfront. Then your team can come in and…
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently had the following conversation regarding the development of a new information system for the company: CIO: The way to go about the analysis is to first examine the old system, such as reviewing key documents and observing the workers performing their tasks. Then we can determine which aspects are working well and which should be preserved. MD: We have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. Instead we get a modified version of the old system. CIO: I can assure you that will not happen this time. My team just want a thorough understanding of what is working well and what is not. MD: I would feel much more comfortable if we first started with a list of our requirements. We should spend more time in determining what exactly we want the system to do upfront. Then your team can come in and determine…
When a company has post-acquisition expenditures related to Property, Plant, and Equipment it must determine whether the amount should be expensed as an ordinary repair or capitalized as a major repair, addition, or betterment. This requires considering the nature of the expenditure and the use of judgment. Many companies use a threshold amount. Any expenditure below the threshold is expensed. Items over the threshold are examined and a decision is made about whether to expense or capitalize the item. This approach is justified by both materiality and considering costs and benefits. For example, a company with $94 million in net property, plant, and equipment and $250 million of operating expenses would not consider a $100 repair as material. Plus, if the company had to spend thousands of dollars examining every repair expenditure, the costs of doing the analysis could easily outweigh the benefits. SouthEast Equipment has a large number of machines and equipment that are available for…
Please help I am having trouble with this question. I will attach Images with better quality and some parts I have answered and parts I am missing. Thank you :) Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $39,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27Highlands Mall Job 33Pine Ridge Estates Materials and equipment $ 15,825 $ 52,800 Direct labor 13,800 26,400 Overhead (applied) 5,520 10,560 Overhead has been applied at 40 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional…
The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city posted notices seeking proposals for an artistic bridge design and reconstruction. Davidson Masonry, LLC, which was owned and managed by Carl Davidson and his wife, Marilyn Rowe, decided to submit a bid to create a decorative concrete structure that incorporated artistic metalwork. They contacted Shana Lafayette, a local sculptor who specialized in large-scale metal creations, to help them design the bridge. The city selected their bridge design and awarded them the contract for a commission of $184,000.Davidson Masonry and Lafayette then entered into an agreement to work together on the bridge project. Davidson Masonry agreed to install and pay for concrete and structural work, and Lafayette agreed to install the metalwork at her expense. They agreed that overall profits would be split, with 25 percent going to Lafayette and 75 percent going to Davidson Masonry.…
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently hadthe following conversation regarding the development of a new information system for the company:CIO: The way to go about the analysis is to first examine the old system, such as reviewing keydocuments and observing the workers performing their tasks. Then we can determine which aspectsare working well and which should be preserved.MD: We have been through these types of projects before, and what always ends up happening is thatwe do not get the new system we are promised. Instead we get a modified version of the old system.CIO: I can assure you that will not happen this time. My team just want a thorough understanding ofwhat is working well and what is not.MD: I would feel much more comfortable if we first started with a list of our requirements. We shouldspend more time in determining what exactly we want the system to do upfront. Then your team cancome in and determine what portions…
The Chief Information Officer (CIO) and the Managing Director (MD) of Illustrious Limited recently hadthe following conversation regarding the development of a new information system for the company:CIO: The way to go about the analysis is to first examine the old system, such as reviewing keydocuments and observing the workers performing their tasks. Then we can determine which aspectsare working well and which should be preserved.MD: We have been through these types of projects before, and what always ends up happening is thatwe do not get the new system we are promised. Instead we get a modified version of the old system.CIO: I can assure you that will not happen this time. My team just want a thorough understanding ofwhat is working well and what is not.MD: I would feel much more comfortable if we first started with a list of our requirements. We shouldspend more time in determining what exactly we want the system to do upfront. Then your team cancome in and determine what portions…

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the atkins museum recently hired a new controller.