Inventories Beginning Ending Materials $50,000 $25,000 Work in progress $100,000 $65,000 Finished Goods $40,000 $43,000 Other Information: Depreciation of plant, building and equipment $15,000 Material purchases $155,000 Insurance on plant $20,000 Sales Salaries Expense $48,000 Repairs and maintenance-plant $5,000 Indirect Labour $30,000 Direct Labour $120,000 Admnistrative expenses $52,000 Sales Revenue $550,700
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Prepare Cost of goods manufactured , Income statements separetely.
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- The following annual costs are associated with three new extruder machines being considered for use in a Styrofoam cup plant: Data X-TRUD SUPR-X Useful Life, Years 11 |13 17 First Cost $2,790,000 $3,000,000 $2,980,000 Salvage Value $100,000 $81,000 $93,000 Annual Benefit $265,000 $692,000 $699,000 M&O $62,000 $60,000 $56,000 M&O Gradient $15,500 $10,500 $14,000 The company's interest rate (MARR) is 6%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis and provide the right reason. Choosing SUPR-X is best because it has the highest Annual Benefit Choosing SUPR-X will maximize the EUAB-EAUC; its value is $41,738 higher than X and $15,242 higher than X-TRUD. Choosing SUPR-X is best because it has the lowest M&O cost in yr1 Choosing SUPR-X will maximize the EUAB-EAUC; its value is $481,738 higher than X and $26,242 higher than X-TRUD.R Company made the following expenditures Initial design fee for proposed extension of office building 150.000 New condenser for central conditioning unit 10,000 Purchase of executive chairs and desks 200.000 Purchase storm windows and screens and their Installation on all office windows 500.000 80.000 Sealing of roof leaks in production area Replacement of door to production area Installation of automatic door opening 50,000 system 200 000 Overhead crane for assembly department to speed up production 350.000 Replacement of broken gear on machine 60.000 What total amount should be charged to repair and maintenance expense ?Materials used in research and development projects $4,500 Equipment acquired that will have alternative future uses in future R&D projects for five years 1,500 Personnel costs of employees involved in R&D projects 5,500 Consulting fees paid to outsiders for R&D projects 2,800 Indirect costs reasonably allocable to R&D projects 250 Legal fees associated with registration of a patent resulting from a 2020 R&D project 2,500 Required: Compute the amount of R&D costs that should be classified as expenses in determining 2020 net income.$fill in the blank 1
- PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 896,000 Cost of transporting machine 30,000 Labor cost of installation by expert fitter 50,000 Labor cost of testing machine 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine 60,000 Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required by contract 65,000 What total amount should be capitalized as cost of the equipment?King Company made the following expenditures: Continuing and frequent repairs Repainted the plant building 400,000 100,000 300,000 140,000 Major improvements to the electrical wiring system Partial replacement of roof tiles What amount should be charged to repair and maintenance expense? a. 960,000 b. 820,000 c. 640,000 d. 540,000For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. a530.000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehides b. $12.000,000 cost to develop a coal mine, from which an estimated 1 million tons of coal can be edracted e$248,000 cost to replace the roof on a building d. $140,000 cost of a radio and television advertising campaign to introduce a new product line. e58.000 cost of grading and leveling land so that a building can be constructed.
- The following costs are incurred during the research and development phases of a laser bone scanner Laboratory research aimed at discovery of new knowledge $800,000Search for application of new research findings 400,000Salaries of research staff designing new laser bone scanner 1,200,000Material, labor and overhead costs of prototype laser scanner 850,000Costs of testing prototype and design modifications 450,000Engineering costs incurred to advance the laser scanner to full production stage (technological feasibility reached) 700,000 Identify which of these are development phase items and will be immediately expensed under GAAP and IFRS. GAAP IFRS $1,200,000 $1,200,000 $2,400,000 $1,400,000 $2,400,000 $2,500,000 $3,200,000 $2,500,000Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:Basic research to develop the technology $ 3,900,000Engineering design work 1,180,000Development of a prototype device 590,000Testing and modification of the prototype 390,000Legal fees for patent application 79,000Legal fees for successful defense of the new patent 39,000Total $ 6,178,000During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.Required:1. Which of the above costs should Satellite Systems capitalize to the Patent account in the balance sheet?2. Which of the above costs should Satellite Systems report as research and development expense in the income statement?3. What are the basic criteria…Foster has built a new factory incurring the following costs: $'000 Land 1,200 Materials 2,400 Labour 3,000 Architect's fees 25 Surveyor's fees 15 Site overheads 300 Apportioned administrative overheads 150 Testing of fire alarms 10 Business rates for first year 12 7,112 What will be the total amount capitalised in respect of the factory? A $6,112,000 B $6,950,000 C $7,112,000 D $7,100,000
- Direct material used $20,000 Depreciation- plant building $8,000 Indirect material (supplies) $2,500 Depreciation - sales building $6,000 Direct manufactured labor $7,000 Depreciation - plant tools $2.300 Indirect manufactured labor (annually salaries) $3,500 Production 40,000 units The total of "ixed costs" is: Question 3/20o 1.22300, 2 17300. 3.16300. 4.10,300. 5. None of the aboveDorman company purchased a new machine for its production process. The following costs were incurred for the new machine. Training costs for workers who will operate the machine $15,000 Wages paid to workers who operate the machine during production 109,000 Ordinary repairs to the machine before the first production run 1,000 1 Cost of platform used to properly secure the machine 30,000 Costs of tests run which took place before the first production run 8,000 WHICH COSTS SHOULD BE ADDED TO THE COST OF MACHINE?Synder corp present the following information for the year ended December 2008. Inventories Beginning Ending Materials $50,000 $25,000 Work in progress $100,000 $65,000 Finished Goods $40,000 $43,000 Other Information: Depreciation of plant, building and equipment $15,000 Material purchases $155,000 Insurance on plant $20,000 Sales Salaries Expense $48,000 Repairs and maintenance-plant $5,000 Indirect Labour $30,000 Direct Labour $120,000 Admnistrative expenses $52,000 Sales Revenue $550,700 1. Prepare a schedule of cost of goods manufactured FOR THE YEAR ended December 31,2008