A. What is the cost per square foot of the 2,000 square feet house? B. You are also considering to expand the floor area to 4,000 square feet, estimate the construction costs if: i. All costs in the table change proportionately to the size increase. B. ii. The first two cost items do not change at all; all others are proportionate.
Q: Use the following to answer questions 7 – 17 During September, KC Company sells 730 mountain bikes f...
A: 1. FIFO Method - Under FIFO Method, Inventory that purchased first is sold first. 2. LIFO Method - U...
Q: 28
A: Tax due in non filling According the Philippines taxation there must be fine charges which are attra...
Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable inco...
A: Depreciation under financial accounting = 1260000/8 = 157500 per annum Depreciation under tax = 126...
Q: Benchmarking The call center of Wobegon Electric Company handles 1.32 million calls per year. The av...
A: Solution Working note Cost per hour (A) Minutes per hour (B) Cost per minutes (A/B) ...
Q: 24. Find the future value of a P120 000-investment compounded semi-annually at 1.5% for 5 years. 25....
A: calculation of future value and interest amount are as follows
Q: On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for 10 years, ...
A: Solution Comprehensive income includes net income and unrealised income , such as unrealised gain o...
Q: hich of the following entries appear on the parent company’s books to account for its investment in ...
A: Solution Concept In case of the investment in subsidiary , the net income of subsidiary is credited ...
Q: Bravery Pte Ltd, was incorporated on 16 January 2019 as a manufacturing company with an accounting y...
A: Taxes are mandatory donations levied by a government entity, whether local, regional, or national, o...
Q: Health R US To meet Food and Drug Administration requirements and to assure its customers of safe, s...
A: The overhead cost can be applied to the production on the basis of predetermined overhead rate. The ...
Q: Jefferson Enterprises acquired assets and liabilities of Alaska Company for P600,000. At that date, ...
A: As per IFRS 3 In business combination acquired assets and liabilities shall be valued at fair market...
Q: What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Div...
A: Solution:- Given, Investment = $8,80,000 Units produced = $1,19,000 Market Price = $12.20 per unit V...
Q: A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B(30%) ...
A: The partnership comes into existence when two or more persons agree to do the business and share pro...
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.40 each. Its variable cost is $1...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: Blue Spruce Distribution markets CDs of numerous performing artists. At the beginning of March, Blue...
A: Cost of goods sold = Cost of goods available for sale - Ending Inventory Average cost = Total cost /...
Q: The Majors Company collected the following information (in days): Inspecting product Transporting pr...
A: The production cycle time is the time it takes to transform raw resources into finished goods. It is...
Q: The management of Amex Corp. plans to meet a future capital expenditure by depositing $25,000 into a...
A: The present value of the investment is the amount that one invest in the current period. The future ...
Q: Ferguson Farrar Limited is a manufacturing company. For the month of April 20X3 it budgeted for 4000...
A: Variance is the difference between the actual result from the expected result. Expected result is kn...
Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to...
A: There could be lot of factors which are to be considered while comparing alternative solutions to a ...
Q: payment
A: Time value of money is the concept widely used by the management and individuals to determine the co...
Q: Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percenta...
A: Prime cost refers to the core outlay made on producing the merchandise by an entity. It mainly inclu...
Q: Which is true regarding the Non controlling interest? * [a] It is accounted for in the sub...
A: As per generally accepted accounting principles , non controlling interest is shown under equity sec...
Q: An accountant wants to withdraw $30,000 from an investment at the beginning of each quarter for the ...
A: Time value money is the concept widely used by the management and individual to determine the correc...
Q: 1. What is the realized holding gain on inventory for 2010? 2. What is the unrealized holding gain o...
A: Normally, the recording of the transactions in the books of accounts and the profit and loss calcul...
Q: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $30,000 $29,200 Inventory 75,800 76,500 Accounts pay...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in Cash flow statements. ...
Q: 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book an...
A:
Q: Which is true regarding the Investment in Subsidiary Stock account?
A: Subsidiary stock account is a non-current assets in the balance sheet of the parent entiti
Q: Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provide...
A: Lets understand the basics. Entity calculates the predetermine overhead first to allocate the cost t...
Q: Zunio would like to buy his parents two return flight tickets to Seoul as their 37th wedding anniver...
A: Solution Working note Price of one ticket today =3000 Price two ticket today =6000 ...
Q: A business pays weekly salaries of P200,000 on Friday for five-day week ending on that day. If the ...
A: 5 days salaries expense = P200,000 Monday to Wednesday = 3 days 3 days salaries expense = (P200,00...
Q: James Company has an arrangement with with Jorge Company that operates a customer loyalty program. T...
A: Customer loyalty programs are accounted for as per IFRS 15. Such a program is used by a company to i...
Q: Company A purchased Company B for $156 cash. At the time of purchase, Company B had the following in...
A: Lets understand the basics. When purchaser paid more than the net asset of the company then goodwill...
Q: $ 91,300 Harbour Company makes two models of electronic tablets, the Home and the Work. Basic produc...
A: The question is related to Traditional method and Activity Based Costing. The details of two Product...
Q: 3. Palma Company acquired 80% of outstanding ordinary shares of Shera Company for P1,000,000 at the ...
A: Solution Goodwill is an intangible asset that is associated with the purchase of one company by anot...
Q: Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying. Da...
A: Segment contribution margin = service revenue - variable expenses profit margin controllable by segm...
Q: PART II - Below are 2019 FMT Company Cash flow accounts. Increase in bonds 170.0 Net income 117.5 In...
A: The question is related to Cash Flow Statement. The Cash Flow Statement is a Statement of Cash Recei...
Q: 3. Which is true regarding the Investment in Subsidiary Stock account?* A. It is accounted for in t...
A: Introduction: First of all let's understand what is consolidated method of accounting how it works: ...
Q: Magdalena, age 35, has $72,000 accumulated in savings. She projects she will save $23,000 a year unt...
A: The amount you can put back or invest each period, as well as the interest you earn on your savings,...
Q: Everest acquired assets and liabilities of Cola for Cola 's book value at the balance sheet date, At...
A: In the books of acquirer , assets acquired will be recorded at fair value . In the balance sheet , i...
Q: I have the entire chart completed as seen in the attachment but I can not figure out what I am doing...
A: Comprehensive Income - Comprehensive Income include items which are not included in the statement of...
Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the fol...
A: Consolidation- The consolidated financial statement, which represents the financial status of both a...
Q: 36. At January 1, 2020, Jake, Inc. has beginnin 15,000 units during the first quarter of 2020 with a...
A: Solution Given Beginning inventory on Jan 1 2020 4000 Units to be sold during first quarte...
Q: Camila Company has set the following standard cost per unit for direct materials and direct labor. D...
A: (1) Actual Cost Standard Cost AQ x AP AQ x SP SQ x SP 128,700 x $4.75 128,700 x $5.00 1...
Q: What the answer for 22, 24, 27 For 22 I had got 950,000 and it’s wrong For 24 I had got 46,500 and i...
A: Calculation of Sales. Sales = Net Sales - Sales Discount. Sales = 5950000 - 20000 = 5930000
Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During...
A: Variance is the difference between a budgeted, planned, or standard cost and the actual amount incur...
Q: Which of the following intangible assets should be shown as a separate item on the balance sheet? a...
A: As per IFRS Goodwill is the intangible asset that should be shown separately under the head of "Non-...
Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of 4.4%...
A: solution Given Simple interest rate =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago 1...
Q: Journal entry of the transaction: date/s transaction debit credit Apr-02 Invested in the painting b...
A: Recording journal entries for the transactions occurred by the business is an important process in w...
Q: Mount Manufacturing Company produces industrial and public-safety shirts. As is done in most apparel...
A: The estimation are given as,
Q: construct the Journal Entry of the transaction: Date/# Account Title Debit Credit Oct-01 Garcia inv...
A: Accounting involves the classification, analysis and summarization of relevant accounting transactio...
Q: 1. Compute the standard overhead rate. Hint.: Standard allocation base at 80% capacity is 20,000 DLH...
A: Production of goods involve direct cost and indirect cost. Direct cost are fixed per unit and indire...
Your sister who married an American businessman wants to build a rest house in the highlands of Bukidnon. You have consulted a construction firm to contract the said project and your brother-in-law wants the quotation price to be in US Dollars. Now, you have received the estimate of the construction cost for the 2,000-square foot house will be $150,000. The information below of each cost category already include labor, material and
B. You are also considering to expand the floor area to 4,000 square feet, estimate the construction costs if: i. All costs in the table change proportionately to the size increase.
B. ii. The first two cost items do not change at all; all others are proportionate.
Step by step
Solved in 3 steps
- Amal is considering opening a university in Kabul. In order to begin, she would need to purchase land, build offices and construct a dormitory for 200 students. Each year the university would run for 10 short semesters of one week each. She would hire graduate students as instructors and the ages of students are expected to be between 17 - 19. Amal expects that after 20 years, she will sell the land and building for more than its original purchase price. The following amounts have been estimated: Cost of land $ 730,000 Cost to build dorm and dining facility 2,000,000 Annual cash inflows assuming 100 players and 10 weeks 2,500,000 Annual cash outflows 2,250,000 Estimated useful life 20 years Salvage value 4,400,000 Discount rate 10% (a) Calculate the net present value of the project. (b) Now assume that if only 80 students attend each week, revenues will be $2,005,000 and expenses will be $1,860,000. What is the net present value using these alternative estimates? Discuss your findings.…Karl has been hired to install a new air conditioning system in a building. The total cost of the project is $14,000. Karl charges $1,500 for labor plus 1/6 of the cost of the equipment and supplies. If Karl's expenses for the equipment and supplies are $4,000 more than his estimate, how much did the equipment and supplies cost? MmhnmkuuhbjjThe plant engineer of a major food processing corporation is evaluating alternatives to supply electricity to the plant. He will pay $3 million for electricity purchased from the local utility at the end of the first year and estimates that this cost will increase thereafter at $300,000 per year. He desires to know if he should build a 4000-kilowatt power plant. His operating costs (other than fuel) for such a power plant are estimated to be $130,000 per year. He is considering two alternative fuels: a. Wood: Installed cost of the power plant is $1200/kW. Fuel consumption is 30,000 tons per year. Fuel cost for the first year is $20/ton and is estimated to increase at a rate of $2/ton for each year after the first. No salvage value. b. Oil: Installed cost is $1000/kW. Fuel consumption is 46,000 barrels per year. Fuel cost is $34 per barrel for the first year and is estimated to increase at $1/barrel per year for each year after the first. No salvage value. If interest is 12%, and the…
- Please solve this: Blue Mountain Cabin Jack and Jill Smith have just retired and want to build a small, basic cabin in the Blue Mountains of Vermont. They have hired Daryl Hannah as the general contractor for the project. She has assembled a team of three workers to complete the project: Tom, Dick, and Harry. Daryl has negotiated a cost-plus contract with the Smiths whereby she will receive 15 percent beyond the cost of labor and materials. Before they sign the contract the Smiths want an estimate of how much the project is likely to cost and how long it will take Darryl has estimated that the cost for materials, permits, etc, will total $40,000. She wants to determine labor costs as well as how long the project will take. This is one of sev- eral projects Daryl is managing, and other than occasionally helping out, her role is strictly limited to supervising. She has devised the following master plan and assignments. Note that Dick is the only skilled plumber in the group while Harry…Sammie’s Club wants to buy a 320,000-square-foot distribution facility on the northern edge of a large midwestern city. The subject facility is presently renting for $4 per square foot. Based on recent market activity, two properties have sold within a two-mile distance from the subject facility and are very comparable in size, design, and age. One facility is 350,000 square feet and is presently being leased for $3.90 per square foot annually. The second facility contains 300,000 square feet and is being leased for $4.10 per square foot. Market data indicate that current vacancies and operating expenses should run approximately 50 percent of gross income for these facilities. The first facility sold for $9.4 million, and the second sold for $7.9 million. a. Using a “going-in” or direct capitalization rate approach to value, how would you estimate value for the subject distribution facility?b. What additional information would be desirable before the final direct rate (R) is selected?Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 12 years ago for $3,776,276 in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $3,278,390. An engineer was hired to study the land at a cost of $748,629, and her conclusion was that the land can support the new manufacturing facility. The company wants to build its new manufacturing plant on this land; the plant will cost $5,555,713 million to build, and the site requires $1,384,583 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
- Miss Jana Lim, a graduate of Cebu University, is going to Manila to review for the CPA Board Examination. She is considering to stay in a dormitory that is just a stone’s throw away from the review school during her 5-month stay in Manila. Her aunt, however, is offering her a room in her house which is about three (3) kilometers away from the school. She told her aunt that she would first conduct differential analysis before making her decision on where to stay. She listed the following costs and cost estimates: If she will stay in Her Aunt’s House A Dormitory Plane ticket: Cebu-Manila-Cebu ₱8,000 ₱8,000 Tuition Fee (1) 1,000 1,000 Boarding and lodging fee - 25,000 Share in food and household expenses 10,000 - Transportation (Aunt’s house-school-Aunt’s house) 1,700 - Snacks, etc., while in school 4,000 4,000 Books used in college to be used during the review 10,000 10,000 New review books to be purchased 2,000 2,000 Clothes to be brought to Manila…Denver is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,150 units. The annual cost of these jigs and tools is $35,000. Should Denver acquire these tools? Show your calculations.You are the project manager for Becker Enterprises, LTD. and have been asked to analyze two alternatives for the company’s newest plastics The two alternatives, A and B, will perform the same task, but Alternative A will cost $80,000 to purchase while Alternative B will cost only $55,000. Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows: Year A B 0 $(80,000) $(55,000) 1 (20,000) (6,000) 2 (20,000) (6,000) 3 (20,000) (6,000) 4 (20,000) 5 (20,000) 6 (20,000) 7 (20,000) Calculate each project’s EAC, given a 10% discount Which of the alternatives do you think the company should select and why?
- I am interested in purchasing a 200 unit apartment in New Jersey for all cash. There are 100 one unit bedroom and 100 two unit bedroom. There are 93 one unit bedroom currently occupied and 95 unit 2 bedroom occupied The rent of one -unit bedroom currently is $2000 per month and two-unit bedroom is $2,700 per month. Market rent for one unit bed room is $ 1,700 and two-unit is $2,400 per month. Market vacancy rate is 3.5%. The property generates $30 per month per occupied flat unit. What will be the Gross operating Income for property.In building their plant, the officers of the International Leather Company had the choice between alternatives: One alternative is to build in Metro Manila where the plant would cost P3,000,000. Labor would cost annually P150,000 and annual overhead P60,000. Taxes and insurance would total 5% of the first cost of the plant. The second alternative would be to build in Bulacan costing P3,250,000. Labor would cost P120,000 annually and overhead would be P70,000. Taxes and insurance would be 3% of the first cost. The cost of raw materials would be the same in either plant. If capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose. Use Equivalent Uniform Annual Cost Method. Draw Cash Flow Diagram.Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. Lewisville Company is currently leasing the warehouse to another company for $5,800 per month on a year-to-year basis. (Hint: Use the PV function in Excel to calculate, on an after-tax basis, the PV of this stream of monthly rental receipts.) Lewisville Company is seriously considering converting the warehouse into a factory outlet for furniture. The remodeling will cost $140,000 and will be modest because the major attraction will be rock-bottom prices. The remodeling cost will be depreciated over the next 5 years using the double-declining-balance method. (Note: Use the VDB function in Excel to calculate depreciation charges. The advantage of using the VDB, rather than the DDB, function is that there is a (default) option in the former that provides an automatic switch to the straight-line method when it is advantageous to do so.) The inventory and…