15. The company Constructora Asociados needs to acquire a new mixer to prepare the concrete that it uses in its works. There are two models on the market that provide the same service and produce the same income, each with the following characteristics: mixer type Caterpillar Jhon Deere equipment cost 16,000 14,000 Annual income 8,000 8,000 Operating expenses/year of 1,800 2,200 useful life 5 years 5 years Which of the two mixers should the company buy if its opportunity rate is 13% per year?
Q: Sudoku Company issues 17,000 shares of $7 par value common stock in exchange for land and a…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: The 12/31/24 CIP balance is:
A: Percentage of completion method is the method which is used by the company which deals with the…
Q: 4. On 1 January 20x2, the ledger of Crystal included accrued electricity of RM400 in respect of the…
A: Journal entries recording is the first step of accounting cycle process, under which atleast one…
Q: Cost of Sales Net Beg Net Ending Goods Sales returns Sales Inventory Purchases Inventory Sold 5,000…
A: As requested to answer only question 2 so we are answering only 2 question.
Q: Mayan Company had net income of $32,980. The weighted-average common shares outstanding were 9,700.…
A: Earning per Share (EPS) refers to a company how much earning can able to generate towards its…
Q: Roc Corporation experienced the following transactions: • Borrowed $5,000 from the bank. ● Completed…
A: Introduction: In accrual system of accounting, all income and expenses which are related to the…
Q: Gomes Company uses special journals and a general journal. The following transactions occurred…
A: Journal entry is a process of recording and classifying business transactions initially into books…
Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…
A: The journal entries are prepared to keep the record of day to day transactions of the business of…
Q: On April 2, 2015, Montana Mining Co. pays $4,170,260 for an ore deposit containing 1,438,000 tons.…
A: Depreciation used to record assets value which was over the period of time gone through wear and…
Q: Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the…
A: Compound interest is a method of calculating interest where the calculation considering to add the…
Q: For a partnership, assume for a certain time period, the Income Statement has Sales of $100,000,…
A: Net income: It implies to the earnings that is left with a business after subtracting or deducting…
Q: Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts…
A: Lets understand the basics. Shareholders equity includes total of common stock issued plus retained…
Q: $ 30,526 Selling expense Purchases Inventory, September 15,755 Administrative expense 732 Rent…
A: Cost of goods sold = Beginning inventory + purchases - ending inventory Gross profit = Sales - COGS
Q: (a) From a review of the information above identify the areas which you would concentrate on in your…
A: Student asked for multi sub part question we will solve for first three sub part question for you.…
Q: Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for…
A: METAGROBOLIZE INDUSTRIES Statement of Cash FlowsFor the year ended December 31, 2021($ in…
Q: Required information Problem 9-7B Calculate the issue price of a bond and prepare amortization…
A: Given: - Face value of bond= $720,000 Semiannual coupon: - $720,000×6%2=$21,600 Semiannual market…
Q: 2. On June 4, Marie Company had cash sales rung up by cashiers totaling $119,000Cash in the drawer…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A company had net sales of $570,000, total sales of $720,000, and average accounts receivable, net…
A: Accounts receivable ratio is calculated to know how efficiently the company collects its debts…
Q: On April 2, 2015, Montana Mining Co. pays $4,170,260 for an ore deposit containing 1,438,000 tons.…
A: Depletion charge= (cost of asset/total output from asset) * units extracted during the year.…
Q: What are the dividends per share for preferred and common, respectively?
A: Dividend refers to that portion of the net income of the company which the company paid to its…
Q: Assess the truth of this statement: In the closing entries for a partnership, the partner's drawing…
A: Journal entry at the time of Drawings: Debit: Drawings Credit: Cash Debit: Partner's capital…
Q: William, a resident, has taxable income for 2020/21 of $60,000. The PAYG amounts withheld by his…
A: Pay as you Go [PAYG] is the amount of tax withheld by the employer from the pay out of the employee…
Q: (a)Prepare the journal entry to record the sale of these bonds on January 1, 2022. (b)Prepare the…
A:
Q: The payroll register of Clapton Co. indicates $11,340 of social security withheld and $2,835 of…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $22,200, tefS 2/15, Het b. The cost of the…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: cost ratio, the conservative/conventional retail method should A. Exclude mark-up but not markdown…
A: The conservative/conventional retail method estimates the lower of cost (average) or market value…
Q: Use the above information to prepare a December statement of retained earnings for Help Today. The…
A: Retained earnings is the earnings of the company out from the net profits earned by the company…
Q: The Boxwood Company sells blankets for $36 each. The following was taken from the inventory records…
A: In case of FIFO method the first purchased goods/Beginning inventory will be sold first.
Q: The Early Pearly Company makes product for lovers only in two departments: Forming and Scenting.…
A: Introduction: Weighted average method: A weighted average is a technique that analyzes the perceived…
Q: ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020…
A: When one company purchases the shares of another company then the profit and loss earned by the…
Q: For federal income tax purposes, what term refers to the business entity not being a separate entity…
A: A mutual entity is an entity that involves a private company or a public company. The shareholders…
Q: The financial condition of two companies is expressed in the following accounting equation: Assets…
A: There is case of realization of assets the amount first realise should be used to meet outside…
Q: Apr. 1 Sold merchandise for $4,800, with credit terms n/30; invoice dated April 1. The cost of the…
A: Lets understand the basics. Journal entry is required to record financial event and transaction that…
Q: Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Q: The unearned rent account has a balance of P36,000. If P4,000 of the P36,00 period the amount of the…
A: Adjusting entry: It implies to a journal entry that is recorded at the closing of an accounting…
Q: Exercise 14-7 (Algo) Trend Percentages [LO14-1] Rotorua Products, Limited, of New Zealand markets…
A: Trend analysis is one of the important technique of management accounting, under which increases or…
Q: Sales Net Beg Net Ending Sales returns Sales Inventory Purchases Inventory 1 5,000 80,000 24,000…
A: For solving this question, we need to use below formulas. Net sales = Sales - Sales return Cost of…
Q: Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2…
A: Introduction: Journal entry is primary recording of each and every transaction that has occurred in…
Q: se all the Cost-Volume-Profit related applications to analyse the company and then determine the…
A: Cost Volume Profit Analysis: Profit is the excess of income over expenditure during given period of…
Q: On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5,…
A: Journal Entry: It is the method involved with making records of any exchanges either monetary or…
Q: Prior to recording adjusting entries, the Office Supplies account had a $390 debit balance. A…
A: At the end of every reporting period, generally every entity will physically verify the supplies and…
Q: Q6 (a): A manufacturer has two departments; knitting and finishing. This question focuses on…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Here is my situation. I currently own a heating and cooling business here in Indianapolis. I'm…
A: Introduction: A business organization is a legal kind of enterprise that is founded for commercial…
Q: 1. Using the following information, what is the amount of gross profit? Purchases $ 30,526 Selling…
A: The gross profit is calculated as difference between sales and cost of goods sold. It can be written…
Q: On February 13 Epperson company issued for cash 80,000 shares of no part common stock (with a stand…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: 4/2 Purchased three computers and a printer from Best Buy for $2,000 how to solve this problem? with…
A: • Basic Accounting Equation is given as under: Assets = Equity + Liabilities Meaning, Total…
Q: Which of the following statements correctly gives the account to be debited and the account to be…
A: Cash is being reduced so cash will be credited. So first two options are incorrect. For drawings,…
Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…
A: Journal entry is a process of recording and classifying business transactions initially into books…
Q: On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds…
A: Interest expense = Interest on Bonds + Discount on bonds payable amortized = ($400,000 x 7% x 6/12)…
Q: The ledger of Mai Company includes the following accounts with normal balances as of December 31:…
A: A journal entry which is made to transfer the balances of the temporary accounts prepared during the…
Step by step
Solved in 3 steps
- 4 Al Drama Corporation planning to manufacture 5,000 new products in the organization. The estimated costs are given below. Research and development cost OMR 20,000 Manufacturing cost OMR 5 per unit Production and construction cost OMR 7,000 Repair cost OMR 3,000 Maintenance cost OMR 5,000 Decommissioning cost OMR 1,000 Choose the total life cycle cost per unit of new product: a. OMR 12.2 b. None of these c. OMR 14.2 d. OMR 13.23. Company O has a new product that has the following cost per unit: direct materials - $10, direct labor - $7, and overhead - $3. If the sales manager wants to achieve a gross margin of 25% of cost for the particular product. What would be the selling price per unit?4. Company H acquired an equipment on June 1, 2020 amounting to $35,000 with an estimated useful life of 5 years. What would be the reported carrying value of the equipment on December 31, 2021 if the residual value at the end of 5 years is $5,000?5. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to $50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?Black Widow Company had the following costs for 2020: Raw materials P700,000 Direct labor P100,000 Miscellaneous FOH P80,000 Depreciation on machines P40,000 Rent for the factory building P50,000 Rent for dales office P30,000 Depreciation on store equipment P20,000 How much of those costs should be inventoried under absorption (A) and variable (V) costing methods? Select one: a. (A) P970,000; (V) P800,000 b. (A) P1,000,000; (V) P880,000 c. (A) P1,020,000; (V) P880,000 d. (A) P930,000; (V) P800,000
- Classify the following type of cost with necessary reasons:1.A company had paid 15,50,000 to a marketing research company to find expected demand of the newly developed product of the company2.A company has invested 50,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities.3.Accountant of a cloth factory paid 88,000 for water which has been used for washing the clothes.ABC Company must decide whether it must continue to produce an engine component or buy it from Engine Co. for P25,000 each. The demand for the coming year is 20 units. The costs of producing a single unit of the engine component are as follows: Direct materials P13,000Direct labor 7,000Factory Overhead (80% fixed) 10,000Total P30,000 If ABC buys the components, the facility now used to make the components can be rented out to another firm for P100,000. REQUIREMENTS: 1. Should ABC make or buy the components? 2. How much is the maximum amount that ABC is willing to pay an outside supplier for the engine component? Pls show solutions per requirement.Merco, Inc .. a machinery builder in Louisville. Kentucky. is considering making an investment of $ 1.250,000 in a complete structural-bcam-lubrication system.The increased productivity resulting from the installation of the drilling systemis central to the project's justification. Merco estimates the following figures as a basis for calculating productivity:• Increased fabricated-s teel production: 2,000 LOns/year• Average sales price per ton of fabricated steel: $2,566.50• Labor rate:$ I 0.50/hour• Tons of steel produced in a year: LS.000• Cost of steel per ton (2 .205 lb):$ 1.950• Number of workers on the layout. hole making. sawing, and material handling: 17• Additional maintenance cost: $128.500/yearWith the cost of steel at S 1.950 per ton and the direct-labor cost of fabricating l lb at 10 cents. the cost of producing a ton of fabricated steel is about $2. 170.50. With a selling price of $2.566.50 per ton. the resulting contribution to overhead and profit becomes $396 per ton.…
- Barbardy Company is introducing a new product. The managers are trying to decide whether to make one of its components or buy it from a supplier at a price of P320. The space that could be used to produce the component would have no other use. The following are the data to make the component. Materials P 90 Labor 100 Variable manufacturing overhead 90 Fixed manufacturing overhead 130 Total 410 The estimate reflects 20,000 volume units of the component. Fixed manufacturing overhead consists of depreciation on old machinery. Required: Determine which option is advantageous and by how much? Buy is advantageous by P800,000 Make is advantageous by P800,000 Buy is advantageous by P1,800,000 Make is advantageous by P1,800,000 Group of answer choices 1 2 3 4A Company makes plastic dog carriers. The manufacturing process is highly automated and the machine time needed to make any size crate is approximately the same. A’s management decides to begin producing plastic lawn furniture and, to do so, two additional pieces of automated equipment are acquired. Annual depreciation on the new pieces of equipment is P38,000. Should the new overhead cost be allocated over all products manufactured by A? Explain.Borges Machine Shop, Inc., has a 1-year contractfor the production of 200,000 gear housings for a new off-roadvehicle. Owner Luis Borges hopes the contract will be extendedand the volume increased next year. Borges has developed costsfor three alternatives. They are general-purpose equipment(GPE), flexible manufacturing system (FMS), and expensive, butefficient, dedicated machine (DM). The cost data follow: GENERAL-PURPOSE EQUIPMENT(GPE) FLEXIBLEMANUFACTURINGSYSTEM (FMS) DEDICATEDMACHINE(DM) Annual contractedunits 200,000 200,000 200,000Annual fi xed cost $100,000 $200,000 $500,000Per unit variable cost $ 15.00 $ 14.00 $ 13.00Which process is best for this contract?
- 12 Marites Company, which is subject to 30% tax, had the following operating data for the period just endedSelling price per unit P 80Variable cost per unit 42Fixed costs 504,000Management plans to improve the quality of its only product by way of implementing the following:(1) Replacing a component that costs P1.50 with a higher-grade unit that costs P3.50 and(2) Acquiring a P90,000 packaging machine. Maris will depreciate the machine over a 5-year period with no estimated salvage value by the straight-line method of depreciation.If the company wants to earn after-tax of P201,600 in the coming year, how many units must be sold?a. 10,300 unitsb. 21,316 unitsc. 22,500 unitsd. 27,000 unitsA manufacturer has been offered a contract to manufacture a certain product that will utilize the waste materials from his present product. The new product will use 0.3kg of waste materials per unit which is presently sold by the company for P2.00 per kg. Other materials to be used will cost P0.80 per unit. Direct labor per unit will cost P2.30. The present overhead costs of the company amount to P380,000 plus 40% of the total for direct materials and direct labor costs per year. The buyer will pay the manufacturer per unit an amount equal to the increment costs plus P1.20 profit. Determine the selling price of the manufacturer per unit.A company is going to buy a new equipment for manufacturing itsproduct. Four different equipment’s are available; costs, operating and otherexpenses are as follows:Equipment A B C DFirst Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000Power per year Php 1300 Php 1360 Php 2400 Php 2520Labor per year Php 10,600 Php 9320 Php 4200 Php 2700Maintenance/year Php 2800 Php 1900 Php1300 Php 700Taxes & Insurance 2% 2% 2% 2%Life; years 5 5 5 5 Money is worth 10% before taxes to the company. Which equipment shouldbe purchased ? Choose which method is applicable.