A building with a cost of $225,000 has an estimated residual value of $45,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method.
a. What is the amount of the annual
depreciation?
$
b. What is the book value at the end of the
fifth year of use?
$
c. If at the start of the sixth year it is
estimated that the remaining life is 5 years and that the residual
value is $10,000, what is the depreciation expense for each of the
remaining 5 years?
$
In: Accounting
Cost of Units Completed and in Process
The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.
Work in Process—Assembly Department
Bal., 6,000 units, 70% completed16,140To Finished Goods, 138,000 units?
Direct materials, 141,000 units @ $1.5211,500
Direct labor178,700
Factory overhead69,430
Bal., ? units, 45% completed?
Cost per equivalent units of $1.50 for Direct Materials and $1.80 for Conversion Costs.
a. Based on the above data, determine the different costs listed below.
If required, round your interim calculations to two decimal places.
1. Cost of beginning work in process inventory completed this period$
2. Cost of units transferred to finished goods during the period$
3. Cost of ending work in process inventory$
4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)$
b. Did the production costs change from the preceding
period?
Yes
c. Assuming that the direct materials cost per unit did not
change from the preceding period, did the conversion costs per
equivalent unit increase, decrease, or remain the same for the
current period?
Increase
In: Accounting
Explain whether there is a difference between goals in maximizing output for a given cost of minimizing the cost of producing a given level of output.
In: Economics
LOVE Enterprise is a seller of cupcakes. The variable cost is RM4 per unit and the fixed cost is RM800 for a month. A cupcake is sold at RM12.
Required:
(a) Briefly explain the importance of cost-volume-profit analysis for a business. (7 marks)
(b) Calculate the contribution margin for a unit of cupcake. (3 marks)
(c) Determine the number of cupcakes need to be sold to achieve break-even point. (3 marks)
In: Accounting
How can we come up with the numbers for the Benefits / Disbenefit / and Cost? of these topics for Covid-19
Wash Hands: $ Benefits, and $ Cost
Avoid Close Contact: $ Benefits, and $ Cost
Wearing Mask: $ Benefits, and $ Cost
Hand sanatizers: $ Benefits, and $ Cost
Monitor Your Health: $ Benefits, and $ Cost
Medical Health Care: $ Benefits, and $ Cost
Vaccination: $ Benefits, and $ Cost
Please Help me out, I can't seem to find the numbers to create a ( incremental Benefit / Cost matrix)
Thanks
In: Economics
Daily Enterprises is purchasing a $ 9.6 million machine. It will cost $ 48000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.3 million per year along with incremental costs of $ 1.2 million per year. Daily's marginal tax rate is 35 %. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?
The free cash flow for year 0 will be $
(Round to the nearest dollar.)
The free cash flow for years 1-5 will be $
(Round to the nearest dollar.)
In: Finance
Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
In: Accounting
The risks of a cost leadership strategy include all of the following EXCEPT:
A. investments in manufacturing equipment can become obsolete due to innovation.
B. firms may fail to understand customers’ perceptions of competitive levels of differentiation.
C. competitors may learn how to successfully imitate their strategy.
D. firms may fail to include enough unique features in the product.
In: Economics
A company purchased land on which to construct a new building for a cost of $350,000. Additional costs incurred were:
Real estate broker's commissions…………………………. $24,500
Legal fees incurred in the purchase of the real estate………… 1,500
Landscaping……………………………………………….. 8,000
Cost to remove old house located on land…………… 3,000
Proceeds from selling materials salvaged from old house 1,000
What total dollar amount should be charged to Land and what amount should be charged to Building or other accounts? Show your work 5 points
In: Accounting
Formulate a cost-benefit analysis for care at a distance,
prevention and selfmanagement
by the patient.
In: Economics