Picture2

During year 1, Perez Manufacturing Company incurred $117,500,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $64 per unit. Packaging, shipping, and sales commissions are expected to be $11 per unit. Perez expects to sell 2,500,000 batteries before new research renders the battery design technologically obsolete. During year 1, Perez made 434,000 batteries and sold 395,000 of them. Fill in the GAAP-based income statement for year 1. Use the sales price = 93.75 PEREZ MANUFACTURING COMPANY Income Statement Sales revenue Cost of goods sold Gross margin Depreciation expense Inventory holding expense Research & development expense Net income (loss) 0 $0 F

During year 1, Adams Manufacturing Company incurred $118,900,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $40 per unit. Packaging, shipping, and sales commissions are expected to be $19 per unit. Adams expects to sell 2,900,000 batteries before new research renders the battery design technologically obsolete. During year 1, Adams made 432,000 batteries and sold 393,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Adams desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and…

During year 1, Baird Manufacturing Company Incurred $65,800,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in year 1. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $78 per unit. Packaging, shipping, and sales commissions are expected to be $7 per unit. Baird expects to sell 1,400,000 batteries before new research renders the battery design technologically obsolete. During year 1, Baird made 432,000 batteries and sold 405,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the year 1 amount of cost of goods sold and the ending Inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Baird desires to earn a profit margin that is equal to 30 percent of the total cost of developing, making, and…

all I need is cost of goods sold, it's not 36,704,000

On March 17, Advanced Technologies developed a patent related to laser surgery techniques. They spent $1,200,000 to develop the patent internally, consisting of personnel ($800,000), equipment ($300,000), and materials ($100,000). The company also had the following additional costs: $20,000 in legal fees associated with the purchase and filing of the patent, $35,000 to advertise its new laser surgery techniques, and $45,000 to train employees. What is the recorded cost of the patent?

During 2017, Thornton Manufacturing Company incurred $70,000,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in 2017. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $52 per unit. Packaging, shipping, and sales commissions are expected to be $10 per unit. Thornton expects to sell 1,400,000 batteries before new research renders the battery design technologically obsolete. During 2017, Thornton made 449,000 batteries and sold 392,000 of them. Required a. Identify the upstream and downstream costs. b. Determine the 2017 amount of cost of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP. c. Determine the sales price assuming that Thornton desires to earn a profit margin that is equal to 20 percent of the total cost of developing, making, and…

Sunrise, Inc. manufactures gears as a component for its product. In 2022, Sunrise incurred the following costs in producing 12,000 pieces of gears: direct materials – P120,000; direct labor – P80,000; variable manufacturing overhead – P100,000; fixed manufacturing overhead – P200,000; and fixed non-manufacturing costs – P150,000. Makina Corp. offers to produce the 15,000 pieces of the gear component for Sunrise, Inc. needs in 2023. If the latter (Sunrise) accepts to buy the gears from Makina, 40% of the fixed manufacturing overhead will be avoided, but fixed non-manufacturing costs will not change. At what selling price of each gear from Makina will make Sunrise indifferent on whether to produce or buy the said gear components?

Bianca Company incurred the following costs during 2021:- Testing in search for process alternative = 230,000- Adaptation of an existing capability to a particular requirement or customer's need = 140,000- Design, construction, and testing of pre-production prototypes and models = 120,000- Routine design of tools, jigs, molds, and dies = 125,000 Required:How much is the research and development expense in 2021?

Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the approval of the building permits, the company operated a parking lot on the land. This parking lot had revenues, net of costs, of $130,000. Construction will take place over an 18-month period. Total construction costs were as follows: Material Labour Incremental overhead General overhead Interest costs on general loan Cost of building permits $ 640,000 1,100,000 240,000 100,000 200,000 40,000 Required: Provide the total amount of construction costs that would be capitalized to the cost of the building using ASPE. Indicate the items that are different as compared to IFRS. (Negative amounts should be indicated by a minus sign.) Capitalized Expensed Material Labour Incremental overhead General overhead Interest costs on general loan Cost of building permits Parking lot operation Total

Enjoy It Industries manufactures custom-designed playground equipment for schools and city parks. Enjoy It expected to incur $750,600 of manufacturing overhead cost, 41,700 of direct labor hours, and $1,000,800 of direct labor cost during the year (the cost of direct labor required $14,200 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 27% over manufacturing cost. $24 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During July, Enjoy It completed Job 309. The job used 165 direct labor hours and Read the equirement Requirement 1. Calculate the manufacturing cost of Job 309. First identify the formula, then calculate the predetermined overhead rate. = Predetermined overhead rate per hour

Bramble Inc. plans to purchase a new metal stamping machine for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The engineering department has determined that each vendor's stamping machine is substantially identical and each has a useful life of 30 years. In addition, engineering has estimated that required year-end maintenance costs will be $2,790 per year for the first 10 years, $4,790 per year for the next 10 years, and $11,790 per year for the last 10 years. Following is each vendor's sale package: Vendor A: $36,200 cash at time of delivery and 5 year-end payments of $50,300 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 30-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $47,300. Vendor B: Forty semiannual payments of $13,100 each, with the first…

XYZ has spent $15,000 researching new cleaning liquids in the year ended 31 December 2014. It has also spent $20,000 developing a new cleaning product which will not go into commercial production until next year. The development project meets the criteria laid down in IAS 38.

On 1-March-2010, Alpha Pharmaceuticals Ltd. purchased 10 machines for manufacturing tablets. The price of each machine is $150,000. The transportation and installation cost is 1% and 2.5% of the price respectively for each machine. The company also had to bear the cost of test runs for each machine, which were $1,500. The approximate repair and maintenance expense for each machine is $4,000 per year. The company paid 25% of price in cash and signed a 6 month, Notes Payable (N/P) for the remaining balance. The N/P bears interest expense for the company at 5% per annum. Each machine is useful for 5 years and experts estimate that each machine can be sold at the end of its useful life for 10% of its purchase price.During its useful life, the machine will produce 7,500,000 tablets. Following table shows number of tablets produced in each year. Please note that the company’s fiscal year ends on 30th June. year  unit produced  1 2,500,000 2 1,700,000 3 1,400,000 4 1,200,000 5…

Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:   Machine Hours Quantity Produced 4-inch 5,000   15,000 rolls   6-inch 12,000 12,500 rolls 9-inch 7,000 11,200 rolls After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell. Cell, 4-inch $125,000 Cell, 6-inch 175,000 Cell, 9-inch 165,000 After installing JIT, the maintenance cost per roll of 6-inch insulation is a. $12.85. b. $8.67. c. $14.00. d. $17.00.

Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor’s punch press is substantially identical and each has a useful life of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $1,000 per year for the first 5 years, $2,000 per year for the next 10 years, and $3,000 per year for the last 5 years. Following is each vendor’s sales package. Vendor A: $55,000 cash at time of delivery and 10 year-end payments of $18,000 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 20-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $10,000. Vendor B: Forty semiannual payments of $9,500…

JUBAIL BUILDERS  is constructing a multi-unit residential complex.  In the prior year, JUBAIL BUILDERS entered into  a contract with a customer  for a specific unit that is  under construction.  JUBAIL has determined that the contract is a single performance obligation satisfied over time.  JUBAIL BUILDERS  gathered the following information for the contract during the year.   JUBAIL BUILDERS-Year Ended December 31, 2018: Costs to date 10,500,000 Future expected costs 7,000,000 Work certified to date 12,600,000 Expected Sales value 22,400,000 Revenue taken in earlier period 8,400,000 Costs taken in earlier periods 6,650,000 Calculate the amounts to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 2018 on both methods (I) Input Method (cost basis), and (II)  Output Method (Sales Basis) Calculate the total expected profit for the year 2018?

During the current year, Pitt Company incurred costs to develop and produce a routine, low-risk computer software product. 1,300,000 Completion of detailed program design Costs incurred for coding and testing to establish technological feasibility Other coding costs after establishment of technological feasibility Other testing costs after establishment of technological feasibility Costs of producing product masters for training materials Duplication of computer software and training materials from product masters (1,000 units) Packaging product (500 units) 3. In the year-end statement of financial position, what amount should be capitalized as software cost? 1,000,000 2,400,000 2,000,000 1,500,000 2,500,000 900,000 a. 5,400,000 b. 5,700,000 c. 5,900,000 d. 6,900,000

Bonita Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is substantially identical and each has a useful life of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $1,030 per year for the first 5 years, $2,030 per year for the next 10 years, and $3,030 per year for the last 5 years. Following is each vendor's sales package. Vendor A: $58,000 cash at time of delivery and 10 year-end payments of $16,360 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 20-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $9,640. Vendor B: Forty semiannual payments of $9,120 each,…

Nihon, Inc., manufactures digital cameras. It has two departments assembly and testing. In January 2020, the company incurred $725,000 on direct materials and $825,000 on conversion costs, for a total manufacturing cost of $1,550,000 Read the requirements arch Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2020. During January, 20,000 cameras were placed into production and all 20,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? (Round your answers to the nearest cent) Direct materials cost per unit Conversion cost per unit Assembly department cost per unit Etext pages Get more help. Requirements 1. Assume there was no beginning inventory of any kind on January 1, 2020 During January, 20.000 cameras were placed into production and all 20,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? 2 Assume that during February 20,000 cameras are…

In year 1 a company incurred the following indirect costs: $35,000 Heat and lighting Rent and rates $45,000 These costs are apportioned to Department A and Department B on the basis of floor area occupied. A occupies 10,000 square meters and B occupies 5,000 square meters. In year 2 the indirect costs will rise by 20% and the size of the building will be increased by one third. Department C will occupy the new area. In year 2 how much of the indirect costs will apportioned to Department B?

Please help me

Prior to install a JIT system, Buckner Company, a producer of automobile parts, used maintenance hours to assign maintenance costs to its three products (wheels, rims, and ball bearings). The maintenance costs totaled $12,000,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Wheels: Machine hours: 150,000 Qnty produced: 187,500 Rims: Machine hours: 300,000 Qnty produced: 281,250 Bearings: Machine hours: 350,000 Qnty produced: 350,000 After installing JIT, three manufacturing cells were created and the cell workers were trained to perfom preventive maintenance and minor repairs. A full-time maintenance person was also assigned to each cell. Maintenance costs for the three cells still totaled $12,000,000; however, these costs are now treaceable to each cell as follows: Cell, wheels: $2,640,000 Cell, rims: 4,560,000  Cell, bearings: 5,600,000 1) Compute the pre-JIT maintenance cost per unit for each product (round answers to two…

A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchased a warehouse and converted it into a manufacturing plant for $8,000,000. It completed installation of assembly equipment worth $1,700,000 on December 31st. The plant began operation on January 1st. The company had a gross income of $8,600,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,170,000. The depreciation expenses for capital expenditures amounted to $465,000. The corporate tax rate is 21%. (a) Compute the taxable income of this company. The taxable income of this company is $ 5965000. (Round to the nearest dollar.) (b) How much will the company pay in federal income taxes for the year? The federal income taxes for the year will be $ (Round to the nearest dollar.)

Account

Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-inch insulation. The maintenance costs totaled $400,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:   Machine Hours Quantity Produced 6-inch 12,000   31,250 rolls   8-inch 20,000 25,000 rolls 11-inch 18,000 12,000 rolls After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $400,000; however, these costs are now traceable to each cell. Cell, 6-inch $100,000 Cell, 8-inch 120,000 Cell, 11-inch 180,000 After installing JIT, the maintenance cost per roll of 6-inch insulation would be

Ayayai Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is substantially identical and each has a useful life of 20 years. In addition, Engineering has estimated that required year-end maintenance costs will be $1,020 per year for the first 5 years, $2,020 per year for the next 10 years, and $3,020 per year for the last 5 years. Following is each vendor's sales package. Vendor A: $51,520 cash at time of delivery and 10 year-end payments of $19.750 each. Vendor A offers all its customers the right to purchase at the time of sale a separate 20-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $10,170. Vendor B: Forty semiannual payments of $9,780 each,…

On 1 June 20X1, Galaxy Co. purchased a new machine for use in its factory. The directors have capitalised the purchase price but are unsure how to treat the following related costs. 350,000 was spent on testing whether the machine was functioning properly. During the testing period (June — October 20X1), samples were produced and sold for a total of 75,000. 400,000 was also spent on training existing employees how to operate the new machine. The machine is being used to manufacture a new product, Product C and 1 million was spent on advertising this new product. Testing was completed and commercial production of Product C commenced on 31 October 20X1. Required: Advise Galaxy on how the above transactions should be dealt with in its financial statements for the year ended 31 December 20X1.

Ortega Industries manufactures 15,700 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials $ 154,000 Direct labor 260,000 Variable manufacturing overhead 92,000 Fixed manufacturing overhead 140,000 Total $ 646,000 Assume that the fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility. This facility cannot be used for any other purpose. An outside supplier has offered to sell the component to Ortega for $34. If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a: