SURVEY OF ACCOUNTING-ACCESS
SURVEY OF ACCOUNTING-ACCESS
4th Edition
ISBN: 9780077631536
Author: Thomas Edmonds
Publisher: McGraw-Hill Education
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Chapter 11, Problem 5E

a)

To determine

Calculate rental cost per unit and utilities cost per unit for the months of March and April.

b)

To determine

Identify which cost is variable and fixed cost

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Franklin Company had a beginning raw materials inventory of $9,500. During the period, the company purchased $52,000 of raw materials on account. If the ending balance in raw materials was $7,000, what is the amount of raw materials transferred to work in process inventory? I. $54,500 II. $50,500 III. $44,000 IV. $52,000
On January 2, 20X1, Fairmont Industries, which uses the Units of Production (UOP) depreciation method, purchases a machine for $20,000. The company estimates that the machine will have a useful life of 18,000 machine hours and a salvage value of $2,000. You are given the following usage data: . 20X13,500 hours 20X2 2,700 hours = . 20X3 = 6,500 hours • 20X44,300 hours What is the depreciation expense for 20X4?
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