Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $29,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $570.

a. What was the depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $6,820, determine the gain or loss on the sale of the equipment.
$

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

How the company can overcome the internal failure cost?

Chapter 9 SummarizeThe Cost of Production in a 155 words

Are the criticisms of absorption cost systems are valid or invalid and why?

The following pertains to the cost of a product carried in the inventory of the R Store:

• Inventory on hand, January 1                                          0 units
• Purchases, January 8                                                 2,200 units @ $162.00 per unit =     $356,400
• Purchases, January 19                                                   600 units @ $166.00 per unit =     $ 99,600
• Purchases, January 23                                                   200 units @ $168.00 per unit =     $ 33,600
• Purchases, January 26                                                1,000 units @ $170.00 per unit =     $170,000

4,000                                                      $659,600

• Sales, January 10                                                        1,200 units @ $500 per unit
• Sales, January 18                                                           600 units @ $500
• Sales, January 25                                                           100 units @ $500
• Sales January 30                                                            900 units @ $500

2,800                                      (2,800 x $500 = $1,400,000)

Calculate the following for the month of January AND/OR as of 01-31 under each of the following assumptions:

• R uses a perpetual LIFO costing method. R makes sure that exactly 100% of its COGAS ends up either as EI or COGS.

EI:                                                                         

COGS:                                                                  

Gross profit:                                                        

cost pools as follows:

• Machining                     $20,800
• Order Filling                  $30,400
• Other                            $48,800

Machining costs are allocated to products using machine hours (mh) and Order Filling costs are assigned to products using the number of orders (o). The costs of the Other activity pool are not assigned to products. Activity data appears below.

What is the total overhead cost assigned to Product D7 under activity-based costing?

Explain the lower-of-cost-or-market basis of accounting for inventories.

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Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,745. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $98,037. Round your answer to the nearest cent and enter as a positive amount. $ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.