Storm, an entity, had 500 units of product X at 30 June 20X5. The product had been purchased at a cost of $18 per unit and normally sells for $24 per unit. Recently, product X started to deteriorate but can still be sold for $24 per unit, provided that some rectification work is undertaken at a cost of $3 per unit. What was the value of closing inventory at 30 June 20X5?
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- On March 10, 20X1, Indigo Company sold to Barr Hardware 230 tool sets at a price of $54 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Indigo allows Barr to return any unused tool sets within 60 days of purchase. Indigo estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 20X1, Barr returned 6 tool sets and received a credit to its account. Prepare journal entries for Indigo to record (1) the sale on March 10, 20X1, (2) the return on March 25, 20X1, and (3) any adjusting entries required on March 31, 20X1 (when Indigo prepares financial statements). Indigo believes the original estimate of returns is correct. Two journal entries are needed for each part, thus six total journal entries.1. Reveille, Inc., purchased Machine #204 on April 2021, and placed the machine into production on April 3, 2021. The following information is relevant to Machine #204:Price P60,000Freight-in costs 2,500Preparation and installation costs 3,900Labor costs during regular production operation 10,200Credit terms 2/10, n/30Total productive output 138,500 unitsThe company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille, Inc., intends to use the machine only eight years, after which it expects to be able to sell it for P9,800. The invoice for Machine #204 was paid April 10, 2021. The number of units produced in 2021 and 2022 were 23,200 and 29,000, respectively. Reveille computes depreciation to the nearest whole month.Required Compute the depreciation for the years indicated, using the following methods (round your answer to the nearest peso): 1. 2021: Units of productions2. 2022: Sum-of-the-years’- digits method 2. The…In a cost center, the manager has responsibility and authority for making decisions that affect a. costs b. investments in assets c. both costs and revenues d. revenues Keating Co. is considering disposing of equipment with a cost of $68,000 and accumulated depreciation of $47,600. Keating Co. can sell the equipment through a broker for $27,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $46,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is a. $11,160 b. $7,812 c. $16,740 d. $13,392 If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is the contribution margin ratio? a. 64% b. 36% c. 68% d. 32%
- Close A truck costs $302,000 and is expected to be driven 115,000 miles during its five - year life. Residual value is expected to be zero, If the truck is driven 27,.000 miles during the first year, how much depreciation should the business record under the units - of - production method? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) O A. $97,750 XB. $42,260 $23,670 $71,010unset Unlimited bought a machine for $71,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 159,000. Units actually produced were 42,400 in year 1 and 47,700 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?Boat Brothers has been asked to refit a boat for a customer. Skilled labour costing £16 per hour will be required for the refit. The workers will have to be taken off the production of kayak for resale for a total of 480 hours. The kayak are sold for £400 each and take 24 hours of skilled labour. The material cost of each kayak is 120. What is the relevant cost when assessing the viability of the refit contract? OA. £5,600 OB. £8,000 OC. £3,840 OD. £1,760 Next
- The table Top Model corp. produces three products, Tic, Tac, Toc. The owner desires to reduce production load to only one product lien due to the prolonged absence of the production manager. Depreciation expense amounts to P600,000 annually. Other fixed operating expenses amount to P660,000 per year. Which product must be retained and what is the opportunity cost of selecting such product line?Remerowski Corporation Inc. asks you to estim the cost to purchase a new piece of production equip- ment. The company purchased this same type of equipment in the past for $10,000. The original equipment had a capacity of 2000 units, while the new equipment has a capacity of 1000 units. The power-sizing exponent for this type of equipment is 0.28. In addition, the cost index for this type of equipment was 126 when the original unit was purchased and is now 160. If Remerowski uses an 8% annual interest rate to evaluate equipment pur- chases, estimate the cost to purchase the new piece.Maroon Company provided the following data on the date of revaluation: Building, at original cost 5,000,000 Building, at fair value 6,000,000 Accumulated depreciation - cost 40-year life and 10 years expired 1,250,000 Question for Maroon Company: HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE? Question for Noypi Store: Follow the requirement. Choose the answer from the choices with solution. Question for Nes Lee, What is the ending cash balance of September? (Show solution) a. 12,005 b. 17,600 c. 39,205 d. 7,600
- White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 8 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (0) What is the annual depreciation expense (in $) of the shelving? 24 (») What is the accumulated depreciation (in $) after the third year? (e) What is the book value of the shelving (in $) after the fifth year?Jisoo Company purchased an equipment with a list price of 1,500,000 with the following terms:trade discount of 15%,2/10; n/30. The account was paid at the end of the 30 days. The useful life of 5 years. estimated dismanting cost ifs P70,000.The appropriate discount rate is 10%.determine the cost of acquisition of the Equipment?White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving?  B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?