Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2Thornton Corporation manufactures model airplanes. The company purchased for $173,000 automated production equipment that canmake the model parts. The equipment has a $11,000 salvage value and a 9-year useful life.Requireda. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would makeon December 31 to record depreciation on equipment.Accumulated DepreciationDebitCreditManufacturing OverheadDebitCreditDebitDepreciation ExpenseCredit

To solve this problem, we need to calculate the annual depreciation expense for the automated…

Answered: Exercise 11-8A (Algo) Recording…

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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Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Rundle Corporation manufactures model airplanes. The company purchased for $143,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Depreciation Expense Credit Credit Manufacturing Overhead Debit Credit
Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Fanning Corporation manufactures model airplanes. The company purchased for $259,000 automated production equipment that can make the model parts. The equipment has a $19,000 salvage value and a 12-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Answer is complete but not entirely correct. Manufacturing Overhead Debit Credit Debit 20,000 Adjusting Adjusting 19,000 Depreciation Expense Debit Credit Adjusting 20,000 Credit
mework Assignment i es C CON Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Exercise 8-4 Straight-line depreciation LO P1 Esc Straight-Line Depreciation Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Choose Numerator: / Cost minus salvage $ Year 2 Depreciation Year end book value (Year 2) F1 F2 40,500/ Estimated useful life (years) $ ✔ F3 Choose Denominator: # Dashboard F4J 10 4,050 Prev. F5 % = = E Paraphrasing Tool .... Annual Depreciation Expense 1 Depreciation expense $ Saved S 2 3 F6 G A C logitech 4,050 of 9 F7 & Excelsior…
Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Benson Corporation manufactures model airplanes. The company purchased for $166,000 automated production equipment that can make the model parts. The equipment has a $12,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit
Exercise 10-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Brief Exercise 8-4 (Algo) Depreciation expense using the units-of-production method LO 8-4 Clean Air Company makes and sells cloth masks. The company purchased a new automated sewing machine at the beginning of Year 1 for $74,000. The machine is expected to have a two-year useful life and a $20,400 salvage value. The expected mask production is estimated at 107,200 masks. Actual print production for the two years was as follows: Year 1 Year 2 Total 59,000 52,000 111,000 Required: Compute the depreciation expense for each of the two years, using units-of-production depreciation. Depreciation expense Year 1 Year 2
Exercise 10-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $10,900, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $109 discount. Transportation costs of $246 were paid by Rizio. The machine required mounting and power connections costing $754. Another $355 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $220 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Exercise 9-02 Adama Company incurred the following costs.Indicate to which account Adama would debit each of the costs. 1. Sales tax on factory machinery purchased $5,000 Select the account to be debited BuildingPrepaid InsuranceLandEquipmentLand Improvements 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited LandBuildingEquipmentLand ImprovementsPrepaid Insurance 3. Installation and testing of factory machinery 2,000 Select the account to be debited BuildingLand ImprovementsPrepaid InsuranceLandEquipment 4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Land ImprovementsPrepaid InsuranceEquipmentBuildingLand 5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited Prepaid InsuranceEquipmentLand ImprovementsBuildingLand 6. Cost of landscaping on property purchased 7,200…
1 Check my work S Purchase price Delivery cost Installation charge Estimated life $ 55,800 $ 4,000 Estimated units Salvage estimate $ 2,000 5 years 142,000 $ 5,000 During Year 1, the machine produced 38,000 units, and during Year 2 it produced 40,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 12345678 32.00 24.49 19.20 17.49 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46
Question 2: Mirbat Company has the following information for the period ended 31 December 2020. Direct material purchases 380000 OMR Direct labor OMR 210000 Factory maintenance 28000 OMR Power and heat-factory 14500 OMR Direct Expenses prime cost Indirect factory labor 23000 10 % of the OMR Freight In 6500 OMR Depreciation - Factory 24800 OMR Inventories, 1 January 2020: Direct Material OMR 44300 Work-in-process Finished goods OMR 51200 OMR 77000 Purchase returns of direct materials OMR 3400 Inventories, 31 December 2020: Material OMR 18000 Work-in process Finished goods OMR 35000 4000 Units Total Production Units 36000 units Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement II. Calculate unit production cost.
Question 2: Mirbat Company has the following information for the period ended 31 December 2020. Direct material purchases OMR 380000 Direct labor OMR 210000 Factory maintenance 28000 OMR Power and heat-factory 14500 OMR Direct Expenses prime cost Indirect factory labor 23000 10 % of the OMR Freight In 6500 OMR OMR Depreciation - Factory 24800 Advertisement expenses OMR 4500 Inventories, 1 January 2020: Direct Material OMR 44300 Work-in-process Finished goods OMR 51200 OMR 77000 Purchase returns of direct materials 3400 OMR Depreciation-administrative 11800 OMR Inventories, 31 December 2020: Material OMR 18000 Work-in process Finished goods OMR 35000 4000 Units Total Production Units 36000 units Finished goods are valued at the current unit manufacturing cost. You are required to prepare: I. Manufacturing Statement II. Calculate unit production cost.

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