Calculate work in process and finished goods from job cost sheets. (LO 3, 5) Laubitz Company...

   

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Calculate work in process and finished goods from job cost sheets. (LO 3, 5) Laubitz Company begins operations on April 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,500 $4,400 11 12 23 13 May 4,100 3,900 $3,000 June 1,200 April 4,700 3,400 June 14 5,400 3,600 Not complete Each job was sold for 25% above its cost in the month following completion. Instructions a. Calculate the balance in Work in Process Inventory at the end of each month. CASE STUDY DEPRECIATION AND DERECOGNITION OF NON-CURRENT ASSETS Inventory Testing Unit Electric Car Warehouse and Land Sundry Creditor/Cash (To record the acquisition of this group of assets) Emphasis Max has decided to go ahead with the purchase of the group of assets as it will allow him to diversify his production, but limit the amount he needs to borrow to achieve this. The journal entry below represents Max's purchase of the assets. 1 July Exi-Lift Hoist Acc. Dep'n-Ezi-Lift Hoist Office Equip Acc. Depin-Off Equip Tools Acc. Dep'n-Tools Van 3,600 Max has reviewed the other assets he currently owns and has compiled the following information as at 30 June this year (prior to making this acquisition) 660 2,500 31,460 Heading 1 605 231 919 Heading 2 12,000 5,730 17,190 72,580 107,500 Depreciation for these assets is calculated by the straight-line method. The Ezi-Lift Hoist is expected to have a useful life of 10 years with a scrap value of $300. The Tools are expected to be useful for 10 years with a scrap value of $250, and the office equipment is expected to last 5 years and have no residual value. Max is happy to keep using this data for the foreseeable future. The Van will have a residual value of $2,000 and a useful life of 5 years. Max has asked for your help on how to depreciate the assets he has recently acquired. Required 1. Discuss which depreciation method would be appropriate for the new assets acquired given the following information: a. The inventory is in good condition and Max believes there is no risk of obsolescence in the foreseeable future. b. The Electric Car is expected to run for 360,000kms before needing replacing and should fetch a scrap value of $1,300. c. The Testing Unit is an older model. Max has checked with some associates and they believe it should function for at least 5 more years but in 4 years it will become technically obsolete. After 4 years it will only sell for $250 scrap. d. The warehouse is in very good condition and should last at least 10 years at which time it could be knocked down for a cost of $5,000 and the land could be sold for an estimated $90,000. Headin Calculate work in process and finished goods from job cost sheets. (LO 3, 5) Laubitz Company begins operations on April 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,500 $4,400 11 12 23 13 May 4,100 3,900 $3,000 June 1,200 April 4,700 3,400 June 14 5,400 3,600 Not complete Each job was sold for 25% above its cost in the month following completion. Instructions a. Calculate the balance in Work in Process Inventory at the end of each month. CASE STUDY DEPRECIATION AND DERECOGNITION OF NON-CURRENT ASSETS Inventory Testing Unit Electric Car Warehouse and Land Sundry Creditor/Cash (To record the acquisition of this group of assets) Emphasis Max has decided to go ahead with the purchase of the group of assets as it will allow him to diversify his production, but limit the amount he needs to borrow to achieve this. The journal entry below represents Max's purchase of the assets. 1 July Exi-Lift Hoist Acc. Dep'n-Ezi-Lift Hoist Office Equip Acc. Depin-Off Equip Tools Acc. Dep'n-Tools Van 3,600 Max has reviewed the other assets he currently owns and has compiled the following information as at 30 June this year (prior to making this acquisition) 660 2,500 31,460 Heading 1 605 231 919 Heading 2 12,000 5,730 17,190 72,580 107,500 Depreciation for these assets is calculated by the straight-line method. The Ezi-Lift Hoist is expected to have a useful life of 10 years with a scrap value of $300. The Tools are expected to be useful for 10 years with a scrap value of $250, and the office equipment is expected to last 5 years and have no residual value. Max is happy to keep using this data for the foreseeable future. The Van will have a residual value of $2,000 and a useful life of 5 years. Max has asked for your help on how to depreciate the assets he has recently acquired. Required 1. Discuss which depreciation method would be appropriate for the new assets acquired given the following information: a. The inventory is in good condition and Max believes there is no risk of obsolescence in the foreseeable future. b. The Electric Car is expected to run for 360,000kms before needing replacing and should fetch a scrap value of $1,300. c. The Testing Unit is an older model. Max has checked with some associates and they believe it should function for at least 5 more years but in 4 years it will become technically obsolete. After 4 years it will only sell for $250 scrap. d. The warehouse is in very good condition and should last at least 10 years at which time it could be knocked down for a cost of $5,000 and the land could be sold for an estimated $90,000. Headin

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1 Appropriate depreciation methods for the new assets acquired a Inventory No depreciation is requir... View the full answer