To allocate: Purchase cost to each required asset. Given information: Cost of expansion is $5,000,000. Fair value of building is $3,200,000. Fair value of land is $1,600,000. Fair value of Machinery and equipment is $864,000. Fair value of inventory is $183,500. Fair value of manufacturing supplies is $52,500.

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Answer 1

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price$27.00 Variable 2,100 3,100 Fixed Cost Cost Sales Volume 4,100 Profitability 5,100 6,100 $25,700 8 $14,200 $33,200 $52,200 $71,200 $90,200 25,700 9 12,100 30,100 48,100 66,100 84,100 25,700 10 10,000 27,000 44,000 61,000 78,000 35,700 8 4,200 23,200 42,200 61,200 80,200 35,700 9 2,100 20,100 38,100 56,100 74,100 35,700 10 17,000 34,000 51,000 68,000 45,700 8 (5,800) 13,200 32,200 51,200 70,200 45,700 9 (7,900) 10,100 28,100 46,100 64,100 45,700 10 (10,000) 7,000 24,000 41,000 58,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Rundle projects the following data for Delatine: sales, 4,100 bottles; fixed cost, $25,700; and variable cost per unit, $10. c. Rundle is considering new circumstances that would change the conditions described in…

Answer 2

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 3

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 4

Question

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Answer 5

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 6

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

Answer 7

Chapter 11, Problem 11.3E

a.

To determine

To allocate: Purchase cost to each required asset.

Given information:

Cost of expansion is $5,000,000.

Fair value of building is $3,200,000.

Fair value of land is $1,600,000.

Fair value of Machinery and equipment is $864,000.

Fair value of inventory is $183,500.

Fair value of manufacturing supplies is $52,500.

Answer 8

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

Answer 9

b.

To determine

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

Answer 10

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 11

c.

To determine

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

To prepare: Journal entry to record the allocated cost of acquisition of the asset.

To prepare: Journal entry to record the depreciation on building and machinery and equipment, sale of inventory and use of manufacturing supplies.

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Chapter 11 Solutions