Problem 15 and 16

Fred everhead rate based on a normal level of production is $6 per direct labor hour. Given the decreased level of production expected in Year 3, Optiplex estimates a fixed overhead application rate of $9 per direct labor hour in Year 3. Required: Determine the amount at which the inventory of custom-design generators should be reported on Optiplex Corporation's June 30, Year 3, balance sheet. 15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different product lines) that it still has in inventory at December 31, the end of its fiscal year. The following table provides information about each product: Replacement Product Cost Cost Selling Price 101 $130 $140 $160 202 $160 $135 $140 303 $100 $ 90 $ 70 Beech Corporation expects to incur selling costs equal to 5 percent of the selling price on each of the products. Required: Determine the amount at which Beech should report its inventory on the December 31, Year 1, balance sheet. 16. This is a continuation of problem 15. At December 31, Year 2, Beech Corporation still had the same three different products in its inventory. The following table provides updated information for the company's products: Replacement Product Cost Cost Selling Price 101 $130 $180 202 $160 $ 190 $150 $100 $ 160 303 $100 $130 Beech Corporation still expects to incur selling costs equal to 5 percent of the selling price Required: Determine the amount at which Beech should report its inventory on the December 31, Year 2, balance sheet. b. How would your answer above differ if Beech used U.S. GAAP rather than IFRS? 17. Steffen-Zweig Company exchanges two used printing presses with a total net book value of $24,000 ($40,000 cost less accumulated depreciation of $16,000) for a new printing press with a fair value of $24,000 and $3,000 in cash. The fair value of the substance. two used printing presses is $27,000. The transaction is deemed to lack commercial Required: assets. Determine the amount of gain or loss that would be recognized from this exchange of