Bramble Corp. has inventory on hand with a cost of $24000. Its scrap value is $38000. The inventory could be sold for $76000 if processed further at an additional cost of $21000. What should Bramble do? O Manufacture further and sell it for $76000. O Sell the inventory for $38000 scrap value. O Dispose of the inventory to avoid any further decline in value. O Hold the inventory at its $24000 cost.
Q: Periodic Inventory by Three Methods The units of an item available for sale during the year were as…
A: We can calculate the cost of ending inventory and cost of goods sold in various methods, which are…
Q: Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the…
A: According to accounting standard, inventory should be valued at lower of cost or market…
Q: Identify the adjustments for which it could be useful to prepare reversing entries. Select Yes for…
A: Adjusting entries are those journal entries which are prepared at the end of accounting period. The…
Q: Kevin bought 260 shares of Intel stock on January 1, 2018 for $74 per share with a brokerage fee of…
A: The gain on selling the shares arises when the selling price is more than the purchase price. The…
Q: he ledger of Crane Corporation at November 30, 2024, contains the following summary data: Cash…
A: When a company has discontinued operations, the presentation of the income statement may require an…
Q: Problem 2-5 Calculating Taxes [LO 3] Duela Dent is single and had $181,600 in taxable income. Using…
A: The income tax liability is determined based on the taxable income and the taxpayer's filing status.…
Q: Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g.,…
A: Under process costing we need to allocate various departments cost to each other. We have to…
Q: Job cost sheet of Job No. 469 Item: White Lion Cages For: Zawadi Company Date 7/10 12 15 22 24 27 31…
A: The journal entries are prepared to record the transactions on regular basis. The finished goods…
Q: A statement of financial affairs created for an insolvent corporation that is beginning the process…
A: Insolvency of the enterprises :— Insolvency is a state of financial distress in which a business or…
Q: QUESTION FOUR Star (Pty) Ltd purchased new equipment to replace equipment that it has used for five…
A: All expenses incurred to bring the asset to the condition and location necessary for its intended…
Q: The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable…
A: Journal entries are used to record a business transaction in the accounting books and then are…
Q: July 1 1 3 5 12 18 20 21 25 31 31 Clark opened Pharoah's Cleaning Service on July 1, 2022. During…
A: According to the question given, we need to prepare the closing entries.Closing entries:Closing…
Q: 3.1 REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity…
A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information…
A: Budget is a plan that is made to estimate the future income and expenses at a particular time. It…
Q: Barker Products is a job shop. The following events 1. Purchased $13,500 of materials on account. 2.…
A: Job order costing system is used when the jobs are heterogeneous in nature. They are used for…
Q: Expected batches are 300, machine hours are 250, engineering hours are 1,000, and direct labor hours…
A: Activity-Based costing is allocating costs to the activities involved in the production of a product…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Income Statement -The income Statement shows the revenue earned and expenses incurred during the…
Q: Prepare Blue's 2020 journal entries. (Cred
A: The company should be needs to record the leaseback transactions.
Q: is emplo
A: Net wage means the wage that actually received by the employee after all the deductions from…
Q: Valley Source Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing…
A: The merchandise inventory is generally reported at the cost of the net realizable value whichever is…
Q: Average rate of return, cash payback period, net present value method for a service company The St.…
A: The payback period is the length of time needed for an investor to recover the cost of their…
Q: Two items are omitted from each of the following three lists of cost of goods manufactured statement…
A: The cost of goods manufactured (COGM) refers to the total cost incurred by a company to produce…
Q: Calculate the DTI ratio (as a percent) for a borrower who has a gross monthly income of $5,330 and…
A: DTI ratio compares a person's or a household's total debt payments to their gross income. This is…
Q: The following information applies to Kompustat Ltd for Product K (which it manufactures) for the…
A: Cost statement is prepared by the cost account of a firm in which all the manufacturing costs are…
Q: During the current year, Jean and Steve sold the following assets and made the following gains and…
A: The gain or losses that arise after transferring the capital assets consider the sale value and the…
Q: On January 1, 2019, Aronsen Company acquired 90 percent of Siedel Company's outstanding shares.…
A: Consolidation is the process of combination of financial statements of the related business entities…
Q: In connection with a stock option plan for the benefit of key employees, Ward Corp. intends to…
A: Stock option plan refers to a program offered by companies that grant employees the right to…
Q: The following information is taken from the annual report of Coca-Cola Enterprises, Inc.: (amounts…
A: Receivables turnover ratio is the measure that helps the entity to determine its efficiency in…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: Revised Unit Sales [41,000 units + (41,000 units * 18%)] 48,380UnitsTotalPer…
Q: Osman Corp. sells Product CC15 for $126.00 each. Each unit is covered by a three year warranty, and…
A: Warranty expenses is the cost that a business expects to or has already incurred for the repair or…
Q: Explain aslo...all three questions. . 1. A donation of an annuity will cause the donor to pay…
A: Donations tax is a type of tax imposed on the transfer of property or assets without receiving…
Q: Show Me How Average Rate of Return-New Produ Galactic Inc. is considering an investment in new…
A: Average Rate of Return is used to measure the average earning of entity from the average value of…
Q: 2 Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information…
A: Budget is a plan that is made to estimate the future income and expenses at a particular time. It…
Q: What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1.…
A: Depreciation allows a portion of a fixed asset's cost to the income generated by the asset. Because…
Q: A stock market comprises 4600 shares of stock A and 1000 shares of stock B. Assume the share prices…
A: MARKET PORTFOLIOMarket Portfolio is the Bunch of Investment in Different Stock & Assets.A…
Q: 2 6 5 7 B 9 0 1 2 3 4 5 6 7 A Years (date_of_sale) 2018 Row Labels Hayworth Jeffrey Alexander Lindos…
A: The contribution margin is calculated as the amount which remains after the deduction of the…
Q: Herman Company has three products in its ending inventory. Specific per unit data at the end of the…
A: Net Realizable Value (NRV) :— It is the difference between selling price and selling costs. NRV — NP…
Q: George Hoskin started his own business, Hoskin Hauling on July 1, 2021. The following transactions…
A: Journal entry is an art of recording, classifying and summarizing the business transactions into…
Q: Gelb Company currently makes a key part for its main product. Making this part incurs per unit…
A: MAKE OR BUY DECISION The make-or-buy decision is choosing between manufacturing a product within a…
Q: Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: voting stock. On May 15, World-wide Financial Services, Inc. sells 2,000 shares for $12,250. In the…
A: Accouting equation is the basic element of the balance sheet and the primary principle of…
Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: S17-8 Completing and selling products Learning Objective 4 Lincoln Company completed jobs that cost…
A:
Q: Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the…
A: The Numerical has covered the concept Cost of Goods Manufactured.The Formula is used for calculating…
Q: Diaz Company issued bonds with a face value of $127,000 on January 1, Year 1. The bonds had a stated…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…
A: Journal Entries -Journal Entries are the records of the transactions entered into by the company…
Q: 4. Compute gross profit earned by the company for each of the four costing methods. For spectic…
A: FIFO Method: Under this method, inventory is being valued assuming that the Old units were sold…
Q: Refer to Table 10-1, assume interest rates in the market (yield to maturity) are 12 percent for 20…
A: Bond price is referred to the price which is calculated on the basis of coupon amounts and…
Q: Prepare the direct materials budget for the year. DELEON INC. Direct Materials Budget JB 50 JB 60
A: Direct material purchase budget is the statement which is prepared by the entity for the purpose of…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $22,000 but the book value is $ 37,000. The firm's combined tax rate is 27%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.(a) Ahmed Manufacturing LLC is considering using stocks of an old raw material in a special project. The special project would require all 220 kilograms of the raw material that are in stock and that originally cost the company OMR1,804 in total. If the company were to buy new supplies of this raw material on the open market, it would cost OMR8.55 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of OMR5.75 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of OMR9.70 for all 220 kilograms. (i) Calculate the relevant costs of the 220 kilograms of the raw material when deciding whether to proceed with the special project; and (ii) Explain why you consider such costs as relevant to the decision. (b) Ahmed Manufacturing LLC is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to…Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision? Replacement Machine $46,000 Original cost Remaining useful life in years Current age in years Book value. Old Machine $60,000 5 5 OA. the current disposal value of the old machine OB. the original cost of the old machine OC. the sales price of the new machine OD. the annual cash operating costs for both machines 5 0 $30,000 Current disposal value in cash $9.000 Future disposal value in cash (in 5 years) $0 Annual cash operating costs $7,000 Which of the information provided in the table is irrelevant to the replacement decision? $0 $4,500 GETTI
- H Corp is considering the replacement of some machinery that has zero book value and a current market value of P2,800. One possible alternative is to invest in new machinery that costs P30,000. The new equipment has a four-year service life and an estimated salvage of P3,500, will produce annual cash operating savings of P9,400, and will require a P2,200 overhaul in year 3. The company uses straight-line depreciation. The net-present-value of H's investment, assuming an 8% cost of capital (ignoring income taxes) will amount toHancock Company is trying to make a decision as to whether it should purchase of a new piece of equipment. The invoice price of the equipment is $140,000 with an estimate of $4,000 in freight charges and installation costs are expected to be $6,000. The Company expects that the salvage value of the new equipment will be zero after a useful life of 5 years. If the new machine is not purchased, the Company’s existing equipment could be retained and used for an additional 5 years. At that time, the salvage value of the existing equipment would be zero. If the new machine is purchased now, the existing machine would have to be scrapped. The following is data regarding annual sales and expenses with and without the new machine: Without the new machine, Hancock can sell 12,000 units of product annually at a per unit selling price of $100. If the new machine is purchased, the number of units produced and sold would increase by 10%, and the selling price would remain the same.…Otis Company is considering replacing equipment which originally cost P500,000 and which has P460,000 accumulated depreciation to date. A new machine will cost P790,000. What is the sunk cost in this situation?
- Devon Corporation is trying to decide whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $156,500 over its estimated life, while the total cost to buy the equipment will be $122.600 over its estimated life. At Devon's required rate of return, the net present value of the cost of leasing the equipment is $110,600 and the net present value of the cost of buying the equipment is $125.500. Based on financial factors. Devon should: Multiple Choice lease the equipment, saving $33.900 over buying buy the equipment, saving $33,900 over leasing ease the equipment, saving $14,900 over buying buy the equipment, saving $14,900 ever leasingSuper Apparel wants to replace an old machine with a new one. The new machine would increase annual revenue by $200,000 and annual operating expenses by $80,000. The new machine would cost $400, 000. The estimated useful life of the machine is 10 years with zero salvage value. i. Compute the Accounting Rate of Return (ARR) of the machine using the above information. ii. Should Super Apparel purchase the machine if management wants an Accounting Rate of Return (ARR) of 19% on all capital investments? Hint: Use Average Income or Profit after deducting tax, depreciation, and operating expenses.Green Company can purchase a new machine for $100,000. The new machine will have a five-year life with no salvage value. The machine should reduce labor costs by $22,000 per year. Green Company would have to scrap its existing machine, receiving no cash. The existing machine has a book value of $15,000. Should Green purchase the new machine? Yes, as the decreased labor costs are greater than the cost of the new machine. No, as the decreased labor costs are less than the cost of the new machine plus the book value of the existing machine. No, as the decreased labor costs are less than the cost of the new machine. Yes, as the decreased labor costs are greater than the cost of the new machine plus the book value of the existing machine.
- Bangor Moving Company is thinking of opening a new warehouse, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new warehouse. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) Project cost of capital (r)10.0%Opportunity cost$100,000Net equipment cost (depreciable basis)$65,000Straight-line deprec. rate for equipment33.333%Sales revenues, each year$123,000Operating costs (excl. deprec.), each year$25,000Tax rate25%(c) If Sarasota could lease the manufacturing facilities to another company for $25,200 per year, what would be the net total cost to outsource production of the part? Net cost to buy $Key Corp. plans to replace a production machine that was acquired several years ago. Acquisition cost is P450,000 with salvage value of P50,000. The machine being considered is worth P800,000 and the supplier is willing to accept the old machine at a trade-in value of P60,000. Should the company decide not to acquire the new machine, it needs to repair the old one at a cost of P200,000. Tax-wise, the trade-in transaction will not have any implication but the cost to repair is tax-deductible. The effective corporate tax rate is 35% of net income subject to tax. For purposes of capital budgeting, the net investment in the new machine is * A. P540,000 B. P610,000 C. P660,000 D. P800,000 Other: