Required information [The following information applies to the questions displayed below.] Kate's Candy Corporation makes chewy chocolate candies at a plant in Winston-Salem, North Carolina. Ste Bishop, the production manager at this facility, installed a packaging machine last year at a cost of $550,000. Th machine is expected to last for 10 more years with no residual value. Operating costs for the projected levels production, before depreciation, are $110,000 annually. Steve has just learned of a new packaging machine that would work much more efficiently in the production lin This machine would cost $638,000 installed, but the annual operating costs would be only $44,000 befo depreciation. This machine would be depreciated over 10 years with no residual value. He could sell the curre packaging machine this year for $275,000.

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Zina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800

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