An asset is constructed and the following costs are incurred: Materials P1,000,000) (normal, Labor (normal, P800,000)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An asset is constructed and the following costs are incurred: Materials P1,000,000) (normal, Labor (normal, P800,000) Manufacturing overhead Materials Labor Factory OH Construc ted asset 300 200 ? 2 1,300,000 1,000,000 900,000 3,200,000 Finished goods 1,000 800 ? INT Total 1,300 1,000 ? 3.200 How much overhead is to be assigned to each asset? 15. During the current year, Wilbur Company traded in an old machine for a newer model. Data relative to the old and new machines on the date of exchange follow: Old machine: Original cost Accumulated depreciation Average published retail value New machine: List price Cash price without trade in Cash paid with trade in 800,000 600,000 170,000 1,000,000 900,000 780,000 What amount should be recognized as cost of the new machine acquired in the exchange? 14. An entity traded an old equipment with a dealer for newer model. Old equipment: Cost Accumulated Dep'n Carrying amount Fair value Trade in value New equipment: List price Trade in value of old equipment Cash payment 1,400,000 1,000,000 400,000 350,000 500,000 2,000,000 (500,000) 1,500,000 Prepare journal entries using the fair value approach and trade-in value approach. An asset is constructed and the following costs are incurred: Materials P1,000,000) (normal, Labor (normal, P800,000) Manufacturing overhead Materials Labor Factory OH Construc ted asset 300 200 ? 2 1,300,000 1,000,000 900,000 3,200,000 Finished goods 1,000 800 ? INT Total 1,300 1,000 ? 3.200 How much overhead is to be assigned to each asset? 15. During the current year, Wilbur Company traded in an old machine for a newer model. Data relative to the old and new machines on the date of exchange follow: Old machine: Original cost Accumulated depreciation Average published retail value New machine: List price Cash price without trade in Cash paid with trade in 800,000 600,000 170,000 1,000,000 900,000 780,000 What amount should be recognized as cost of the new machine acquired in the exchange? 14. An entity traded an old equipment with a dealer for newer model. Old equipment: Cost Accumulated Dep'n Carrying amount Fair value Trade in value New equipment: List price Trade in value of old equipment Cash payment 1,400,000 1,000,000 400,000 350,000 500,000 2,000,000 (500,000) 1,500,000 Prepare journal entries using the fair value approach and trade-in value approach.
Expert Answer:
Answer rating: 100% (QA)
Amount in P 13 Overhead Allocation To allocate manufacturing overhead to each asset we can use a predetermined overhead rate This rate is typically calculated based on some measure of activity such as ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
The following costs are for Booth, Inc., a manufacturer of labels used in the packaging of a variety of products. Classify the costs as one of the following four options by placing the number of the...
-
Assume a vector field A(p, p, z)= 4 pza,+ 8 pcos()a, is given in free space; a) (17.5 pts) Evaluate the surface integral . A dS over the cylindrical surface which is described as 2
-
Simon Ltd are a manufacturing company with a financial year end 31 December 2020. The following 2 items took place during the year ended 31 December 2020. ITEM 1 Simon Ltd commenced the...
-
Jane Grimes, retail fruit and vegetable merchant, does not keep a full set of accounting records. However, the following information has been produced from the business's records: 1. Summary of the...
-
A uniform square plate of side a = 300 mm is hinged at points A and B to a clevis which rotates with a constant angular velocity about a vertical axis. Determine (a) The value of for which the...
-
The switchboard in a Minneapolis law office gets an average of 5.5 incoming phone calls during the noon hour on Mondays. Experience shows that the existing staff can handle up to six calls in an...
-
What are two inherent limitations of financial statement data?
-
Brown Trout Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations: For preparing the adjusting entries, the...
-
Exercise 1 You are considering building an apartment building. The construction of the building will cost $800,000, plus $40,000 in initial taxes paid to the city. You've owned the land you will...
-
1. Which pricing tactics does each company utilize? Evaluate the effectiveness of each one of these tactics for the particular pizza chain. 2. How might the current price wars change the pricing...
-
Many RDBMSS, induding Access, do not create a unique index on the PK attributets) when you dedare the PK Oa TRUE O b. FALSE
-
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase...
-
Consider the situation of John, aged 15, who is found to be a mature minor. He decides to stop cancer treatment. His oncology team supports his decision. He has been in treatment for two years and...
-
Identify three or more risks associated with grief and bereavement support ?
-
Program development involves learning and understanding the major principles and models of budgeting. Budgeting for financial control of a human services program involves making decisions about...
-
Boettcher Industries was incorporated three years ago in the state of Kansas. The corporation was authorized to issue 100,000 shares of $14 par value common stock. As of January 1, 2023 the...
-
A red ball has a charge of -0.0003117 C. A blue ball with a +0.0004095 C charge is 3.0 meter east of the red one. A green ball with -0.0004785 C charge is 4.0 m north of the red ball. (You should...
-
A superior criticized a sales manager for selling high-revenue, low-profit items instead of lower-revenue but higher-profit items. The sales manager responded, My income is based on commissions that...
-
What effect, if any, would you expect poor-quality materials to have on direct labor variances?
-
Sharkeys Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water...
-
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its...
-
The following balance sheet and income statement data were taken from the financial records of The Dana Point Company: Required 1. Calculate the following ratios for The Dana Point Company for 2015...
-
The Artic Company's income statement and comparative balance sheets at December 31 of 2019 and 2018 are shown below: Cash dividends of \(\$ 40,000\) were declared and paid during 2019. Plant assets...
-
The following selected balance sheet and income statement data were taken from the financial records of The Ventura Company: Required 1. Use the Dupont Model to compute the 2013 through 2016 return...
Study smarter with the SolutionInn App