Use Service-Output Method. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours?  Answer: BV4 = P 78,750.00

Q: A company's bank statement shows $715 direct debits and $353 investment income not recorded in the…

A: Introduction: A bank statement is a  document sent by a bank to its customers about transactions…

Q: Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed…

A: A break-even analysis is used to evaluate the sales volume at which a firm loses money. At this…

Q: ACTIVITY 2014 2015 Horizontal Vertical Analysis Analysis Revenue 1,939,500 1,674,675 1- 7. Cost of…

A: Horizontal analysis is that financial statement analysis under which increase or decrease from…

Q: Why did bank failures increase, with a lag, after deposit insurance became available to banks? What…

A: the financial crisis of 2017 to 8 is considered to the worst in the great depression of 1930. this…

Q: The following mixed costs relate to a small manufacturing company; Output 50,000 units 80,000 units…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q:

A: Deferred Annuity : It is a contract or agreement between the investor and insurance company that…

Q: Comans Corporation has two production departments, Milling and Customizing. The company uses a…

A: Introduction: Manufacturing costs are the costs incurred during the production process of a company.…

Q: Adjusting entries are: a. prepared on December 31, except for companies that use the calendar period…

A: Entries in the books of accounts can be of three types; Journal entries - recorded at the start of…

Q: Pesto Company started its business in selling printers with three-year warranty. It estimates its…

A: Warranty means the undertaking given by the company selling the goods that in case of any defect ,…

Q: Compute for the premiums expense for the year ended: A. December 31, 2020 B. December 31, 2021

A: At the time of selling products, companies offers various discounts and premiums to its customers…

Q: Question 1 The following has been extracted from the financial statements of Rowett: Statement of…

A: Cash conversion cycle indicates that number of days required to recover money from inventories to…

Q: Jenna issued a check amounting to P50,000 on January 15, 2021 knowing that she has a balance of…

A: The cheque is a written document in which the issuer ordered the bank to pay a specific amount to…

Q: Joshua Company has a define contribution plan that covers its existing employees. The terms of the…

A: The prepaid expenses are the payment of expenses in advance before they arise. Prepaid insurance is…

Q: . Inflated sales and bill-and-hold transactions. b.Bill-and-hold transactions and embezzlement of…

A: A Fraud Triangle is a framework that clearly indicates the motivation for an individual to commit…

Q: (a) Describe what it means if a new company decides to issue its ordinary shares to investors in…

A: Ordinary shares are also written as common shares or equity shares. These represents the true…

Q: The following is the list of income and expense accounts of JJJ Partnership as of year-end December…

A: James' share in Net Income James' share in Net Income = Net Income After tax X 1/3 James' share in…

Q: The Rollins Company has office employees and shipping employees. A summary of their earnings and…

A: Payroll Accounting: Accounting for payroll is a method of keeping track of the costs that are…

Q: 4. Karen Galactic, a sales representative for a large chemical company, gets paid a sales…

A: Introduction: A commission is a charge paid to a salesperson by a deal in return for his or her…

Q: Statement 1: It is not always necessary to identify both fair value less cost to sell and value in…

A: The Correct Answer is Option "D" i.e "Both Statement are Incorrect

Q: Manama Steel processes a single type of steel. For the current period the following information is…

A: Process costing is that method of costing, which is used in industries where product has to go…

Q: If you invest $45,000 in the market index and $30,000 in a risk free investment what is the beta…

A: Market index funds always has a beta of 1. Risk free investment always has a beta of 0.

Q: ended 30 June 2021. Prepare an income statement for the year ended 30 June 2021. Note: An Earnings…

A:

Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts:…

A:

Q: ialize transactions and adjusting P16.3 (LO 2, 3) On December 31, 2019, Ogallala Associates owned…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: P10-1C: MULTIPLE CHOICE - PROBLEMS 1. During the year ELLE Company purchased P400,000 of inventory.…

A: Inventory Turnover Ratio is calculated by dividing Cost of Goods Sold by Average Inventory  It is…

Q: Consider the following Information for the business Harry's Vintage Records. Actuals from the year…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: At December 31, 2022, before any year-end adjustments, Dallis Company's Prepaid Insurance account…

A: The prepaid insurance is the amount of insurance paid in advance but is not due yet.

Q: In testing for lower-of-cost-or-market, the auditor is gathering evidence to support which of the…

A: The audit is an examination of the financial statement of the company that helps to find the errors…

Q: At the beginning of current year, an entity leased an equipment from a lessor with the following…

A: As per IFRS 16  The cost of the right of use asset is present value of intial lease liablity ,…

Q: Yanie's coffee beans store had accounts receivable of $18,000 at the beginning of the year and…

A: Cash received from customers = Beginning balance of Accounts Receivable + Credit sales during the…

Q: On December 31, 2021, ORANGE Company owned two assets as follows: Equipment P 100,000 Inventory P…

A: As per IFRS or US GAAP the equipment should be recorded at the recoverable amount if the current…

Q: AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio,…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…

A: 1. Determination of overtime premium company would be willing to pay to keep the upholstery shop…

Q: D. 3.5 OHW Company's debt to equity ratio is 0.6. Current liabilities are P120,000, long term…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: BLACK Company reported the following machineries on December 31, 2021: Accumulated depreciation P…

A: As per International Accounting standard 29, In a situation of hyperinflation currency in the…

Q: D. Lawrance designs and manufactures fashionable men’s clothing. For the coming year, the company…

A: The effect of new or special orders can be evaluated by determining their incremental effect on…

Q: Peter's Records purchases a new desktop computer for $8,900, on the 1st January 2020 The computer is…

A: Straight line rate = 1 / useful life = 1 / 5 = 20% Reducing balance rate = 2 x 20% = 40%

Q: On December 31, 2021, WHITE Company reports the following amounts in its shareholders' equity…

A: The book value per share is calculated as shareholders' equity divided by number of issued and…

Q: Prepare a departmental flexible overhead budget for 30,000 machine hours and for 40,000 machine…

A: A flexible budget adjusts to changes in actual production levels. Actual production or other…

Q: Futura Company purchases the 50,000 starters that it installs in its standard line of farm tractors…

A: Financial advantage (disadvantage) of making the starters = (Purchase price per unit - Relevant…

Q: Rory is a staff of a furniture manufacture company.  His employer allowed him to purchase an office…

A: Fringe benefits are benefits given by the employer to its employees. It includes profit sharing,…

Q: On December 31, 2021, Sleepy Corporation purchased for P40,000,000 cash all of the outstanding…

A: Goodwill: Goodwill is an intangible asset that is associated with the purchase of one company by…

Q: Which of the following is part of risk assessment? A foreign subsidiary does not adapt to changes in…

A: Risk assessment refers to the practice of reviewing the activities as well as investments of the…

Q: d. ratio analysis. B. A firm has liabilities of P30,000 and owner's capital of P90,000. The…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: The Jack and Jill Co., Balance Sheet as on December 31 a company's records show the following…

A: Working capital, also referred to as net cash flow (NWC), is the difference between a company's…

Q: Jaybo Company purchased the following portfolio of equity instrument designated as fair value…

A: Unrealised gains or losses are those gains or losses, which are not realised yet. These are only…

Q: the ABCD partnership on their 2020 income tax returns?

A:

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Under Specific Identification Method, Cost of goods sold and value of ending inventory is calculated…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of the investment will be purchase cost of investment & expenses related…

Q: The following data were taken from the accounting records of Wrecking Balls, Inc Balance at January…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.