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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.20 Actual costs 6,100 hours at $10.00 What is the direct labor rate variance? a. $23,000 unfavorable. b. $7,320 favorable. c. $23,000 favorable. d. $15,680 favorable.

Please provide answer this general accounting and step by step calculation

Dillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account, $2,000 in accumulated depreciation, and $18,000 in its retained earnings account. During the year Dillard sells the equipment for $8,570. After the sale of equipment is recorded, the retained earnings account will have a balance of $_.

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 11 Solutions