Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures? 1. Salaries for the repair technicians, $145,000 2. Remodeling of the executive offices, $85,900 3. Annual maintenance costs related to its machinery, $75,500 4. Improvement of the production line resulting in an increase in productivity, $39,200 5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $43,400
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- During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?Western Wholesale Foods incurs the following expenditures during the current fiscal year. Required: How should Western account for each of these expenditures? 1. Salaries for the repair technicians, $147,000 2. Remodeling of the executive offices, $81,600 3. Annual maintenance costs related to its machinery, $73,400 4. Improvement of the production line resulting in an increase in productivity, $31,000 5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $44,700Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,400; remodeling of offices, $22,000; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,000; addition of a security system to the manufacturing facility, $25,000. How should Demmert account for each of these expenditures?
- During the year just ended, Morton Company made the following expenditures relating to its plant building: Continuing and frequent repairs P1,600,000 Repainted the plant building 400,000 Major improvements to the electrical wiring system 1,280,000 Partial replacement of roof tiles 560,000 How much should be charged to repair and maintenance expense during the year just ended?Hanoi Foods incurs the following expenditures during the current fiscal year: (1) annual maintenance on its machinery, $8,900; (2) remodeling of offices, $42,000; (3) improvement of the shipping and receiving area, resulting in an increase in productivity, $25,000; and (4) addition of a security system to the manufacturing facility, $35,000. How should Hanoi account for each of these expenditures?Demmert Production spent the following money in the current fiscal year: $5,400 on equipment yearly maintenance; $22,000 on refurbishing offices; $35,000 on improving efficiency in the shipping and receiving area; and $25,000 on installing a security system in the manufacturing plant. What is Demmert supposed to do with all of these bills?
- Shane Engineering Ltd. Worked out an estimated expenditure of $ 1,20,000 over a period of 8 years on repairs of machinery. The company decided to raise a 'Provision for Repairs and Renewals Account by debiting Profit & Loss Account with a uniform amount every year. The actual expenditure on repairs during the first four years amounted to $ 5,200, $ 12,900; $ 10,700 and $ 16,800. Prepare Provision for Repairs and Renewal Account stating in the footnote how the figures would appear in Balance Sheet and also for treatment in computing of managerial remuneration.Larkspur Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period: Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended, but before Larkspur begins operating in the building, $81,700 Additional direct labour costs incurred before Larkspur begins operating in the building, $5,770 Material purchased for the building, $82,500 Interest on the loan to finance construction until completion, $2,890 Allocation of variable plant overhead based on labour hours worked on the building, $34,000 f. Architectural drawings for the building, $7,750 Allocation of the president's salary, $56,700 a. b. C. d. e. g. What costs should be included in the cost of the new building if Larkspur prepares financial statements in accordance with IFRS? With ASPE? (Assume that, if there is no specific guidance from GAAP, Larkspur's management would consider a building ready for productive…Betterment versus Maintenance Expenditures During the year, Graham International made the following expenditures relating to plant, machinery, and equipment: Completed regularly scheduled repairs at a cost of $300,000. Overhauled several stamping machines at a cost of $550,000 to improve production efficiency. Replaced a broken cooling pump on a 100-ton press at a cost of $30,000. Required Identify which expenditures should be expensed as a maintenance expense or capitalized as a betterment outlay. Total amount charged as maintenance expense for the year: $Answer Total amount charged as betterment outlays for the year: $Answer
- A company has the following expenditures during the year. 1) Advertising 100,000, 2) employee training 80,000, and Customer outreach and consultation 50,000. The company believes that these efforts have increased the fair value of the entire company by $325,000. How much goodwill can the company recognize at the end of the year associated with these expenditures?Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of the current year, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through the end of last year During the current year, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 2 the current year that improved efficiency $ 6,000 Routine repairs on the equipment 1,000 The equipment is being depreciated on a straight-line basis over an estimated life of 17 years with a $11,000 estimated residual value. The annual accounting period ends on December 31. $ 135, 100 57,000 Required: Indicate the effects of the following on the accounting equation. Note: Enter decreases to account categories as negative amounts and do not round your intermediate calculations. 1. The adjustment for depreciation at the end of last year. 2. The two expenditures during the current…Charles Corp. purchased a new machine for its factory. The following lists shows the various expenditures for the machine during its first year: Base purchase price, $40,000 Sales tax incurred at the time of purchase, $3,000 Installation charges for the machine, $1,000 Insurance costs incurred while the machine was being shipped, $900 Insurance costs for the first year of the machine's service life, $500 Ordinary repairs and maintenance costs during the first year of the machine's service life, $1,200 Question: What should be the capitalized cost of the machine? Answer: $ Answer