INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Chapter 15, Problem 15.4BE
Finance lease; lessee;
• LO15–2
(Note: Brief Exercises 4, 5, and 6 are three variations of the same basic situation.)
A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset’s useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%. If the lessee’s fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?
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Marvel Parts, Incorporated, manufactures auto accessories including a set of seat
covers that can be adjusted to fit most cars. According to its standards, the factory
should work 1,060 hours each month to produce 2,120 sets of seat covers. The
standard costs associated with this level of production are:
Total
Per Set of
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Direct materials
$ 43,460
$ 20.50
Direct labor
$ 9,540
4.50
Variable manufacturing overhead (based
on direct labor-hours)
$ 4,664
2.20
$ 27.20
During August, the factory worked 500 direct labor-hours and produced 2,200 sets
of covers. The following actual costs were recorded during the month:
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Direct labor
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$ 44,000
Per Set of
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$ 20.00
$ 10,340
Variable manufacturing overhead
$ 5,500
4.70
2.50
$ 27.20
At standard, each set of covers should require 2.5 yards of material. All of the
materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for August.
2.…
The following inventory transactions took place for Carla Vista Ltd. for the year ended December 31, 2023:
Cost/
Selling
Date
Event
Quantity
Price
Jan 1
beginning inventory
24,200
$46.00
Jan 5
sale
6,100
79.00
Feb 15
purchase
32,100
37.25
Mar 10
purchase
9,100
44.00
May 20
sale
40,700
79.00
Aug 22
purchase
14,900
40.50
Sep 12
sale
20,300
79.00
Nov 24
purchase
9,900
56.50
Dec 5
sale
17,500
79.00
Calculate the ending inventory balance for Carla Vista Ltd., assuming the company uses a perpetual inventory system and the first-in,
first-out cost formula. Also calculate the per-unit cost of the last item sold. (Round unit costs to 2 decimal places, e.g. 52.75 and ending
inventory to O decimal places, e.g. 5,276.)
Ending inventory
$
Unit cost of the last item sold
$
Harris Fabrics computes it's plantwide predetermined overhead rate annually on the basis of direct labor hours. Please give true answer this financial accounting question
Chapter 15 Solutions
INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
Ch. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - A lessee should classify a lease transaction as a...Ch. 15 - Lukawitz Industries leased non-specialized...Ch. 15 - In accounting for a finance lease/sales-type...Ch. 15 - What is selling profit on a sales-type lease? How...Ch. 15 - At the beginning of an operating lease, the lessee...Ch. 15 - At the beginning of an operating lease, the lessor...Ch. 15 - In accounting for an operating lease, how are the...
Ch. 15 - Briefly describe the conceptual basis for asset...Ch. 15 - In a financing lease, front loading of lease...Ch. 15 - The discount rate influences virtually every...Ch. 15 - A lease that has a lease term (including any...Ch. 15 - A lease might specify that lease payments may be...Ch. 15 - What is a purchase option? How does it affect...Ch. 15 - A six-year lease can be renewed for two additional...Ch. 15 - Culinary Creations leased kitchen equipment under...Ch. 15 - What situations cause us to remeasure a lease...Ch. 15 - Prob. 15.21QCh. 15 - Compare the way a purchase option that is...Ch. 15 - What nonlease costs might be included as part of...Ch. 15 - The lessors initial direct costs often are...Ch. 15 - When are initial direct costs recognized in an...Ch. 15 - Prob. 15.26QCh. 15 - Prob. 15.27QCh. 15 - Prob. 15.28QCh. 15 - When a company sells an asset and simultaneously...Ch. 15 - Prob. 15.30QCh. 15 - Lease classification LO151 (Note: Brief Exercises...Ch. 15 - Lease classification LO151, LO152 Corinth Co....Ch. 15 - Lessee and lessor; calculate interest;...Ch. 15 - Finance lease; lessee; balance sheet effects ...Ch. 15 - Finance lease; lessee; income statement effects ...Ch. 15 - Sales-type lease; lessor; income statement effects...Ch. 15 - Prob. 15.7BECh. 15 - Operating lease LO154 (Note: Brief Exercises 8...Ch. 15 - Operating lease LO154 At the beginning of its...Ch. 15 - Short-term lease LO155 King Cones leased ice...Ch. 15 - Uncertain lease term LO156 Java Hut leased a...Ch. 15 - Uncertain lease payments LO156 On January 1,...Ch. 15 - Purchase option; lessor; sales-type lease LO152,...Ch. 15 - Residual value; sales-type lease LO152, LO153,...Ch. 15 - Guarantee d residual value LO156 On January 1,...Ch. 15 - Lessors initial direct costs; sales-type lease ...Ch. 15 - Lease classification LO151 Each of the four...Ch. 15 - Prob. 15.9ECh. 15 - Lessor calculation of annual lease payments;...Ch. 15 - Sales-type lease; lessor; income statement effects...Ch. 15 - Calculation of annual lease payments; residual...Ch. 15 - Lease concepts; finance/sales-type leases;...Ch. 15 - Calculation of annual lease payments; purchase...Ch. 15 - Prob. 15.37ECh. 15 - Prob. 15.38ECh. 15 - Prob. 15.39ECh. 15 - Lessors initial direct costs; operating and...Ch. 15 - Research Case 151 FASB codification; locate and...Ch. 15 - Ethics Case 153 Leasehold improvements LO153...Ch. 15 - Communication Case 155 Wheres the gain? Appendix...Ch. 15 - Prob. 15.6DMPCh. 15 - Prob. 1CCTCCh. 15 - Prob. 2CCTC
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