Answered: The Roger's Company incurred the…

The Roger's Company incurred the following costs in the acquisition factory production equipment: Invoice price $2,675 Purchase discount lost 75 Freight-in 400 Installation 750 Cost of trial runs 150

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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ANNA Company purchased inventories from abroad for resale incurring the following costs: Determine the cost to be capitalized as part of inventory. 2. ROSALINDA Company accepted a special manufacturing order from RIZZA Company. The Company incurred P250,000 for materials and P170,000 for conversion costs. Since this is a special order, the Company also incurred P100,000 for designing the product and P50,000 for modifying the current production process. In addition, excessive wastage of materials amounting to P80,000 was incurred because of the highly-specialized nature of the order. Lastly, the Company also incurred storage cost of P70,000 when the inventory was in work-in-process stage and P40,000 when it was already a finished product. What amount should be capitalized as part of inventory?
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Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018: purchase price 83200 delivery cost 7000 installation charge 3000 estimated life 5 years estimated units 147000 salvage estimate 5000 determine the amount of depreciation expense for 2018 and 2019 using the following methods: straight line double declining balance units of production
A copy machine costs $41,000 when new and has accumulated depreciation of $35,000. Suppose Hilton Copy Center discards this machine and receives nothing. What is the result of the disposal transaction? A. No gain or loss B. Gain of $6,000 C. Loss of $40,000 D. Loss of $6,000
A copy machine cost $33,000 when new and has accumulated depreciation of $30,000. Suppose ABC Printing discards this machine and receives nothing. What is the result of the disposal transaction? OA. No gain or loss OB. Loss of $3,000 OC. Loss of $33,000 O D. Gain of $3,000
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Measuring asset cost, units-of-production depreciation, and asset trade Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the company’s fleet. When acquired in 2015, the rig cost $360,000 and was expected to remain in service for 10 years or 1,000,000 miles. The estimated residual value was $90,000. The truck was driven 80,000 miles in 2015,120,000 miles in 2016, and 160,000 miles in 2017. After 44,000 miles, on March 15, 2018, the company traded in the Mack truck for a less expensive Freightliner. Wimot also paid cash of $20,000. The fair market value of the Mack truck was equal to its net book value on the date of the trade. Requirements Record the journal entry for depreciation expense in 2018. Determine Wimot’s cost of the new truck. Record the journal entry for the exchange of assets on March 15, 2018. Assume the exchange had commercial…
Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Blade Date of purchase Jan. 12/21 Jan. 12/21 Jan. 12/21 Depreciation Method* SL DDB SL Cost $ 46,000 32,000 11,400 $ 89,400 Est. Residual Est. Life $ 7,000 15 yrs 10 yrs 5 yrs 2,000 1,200 *SL = Straight-line; DDB = Double-declining-balance On January 7, 2023, the machine blade cracked and it was replaced with a new one costing $11,600 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2023, it was determined that the useful life on the metal housing should be increased to a total of 18 years instead of 15 years and that the residual value should be increased to $9,200. Required: 1. Prepare the entry to record the purchase of the replacement…