What is the cost of the building? What is the cost of machinery and equipment?
Q: How much is the cost of th
A: To calculate the cost of acquisition or self construction, IAS 16 should be referred.
Q: What are the factors affecting equipment costs?
A: Equipment cost is the total cost incurred to bring the equipment in the useable state. It includes…
Q: Which one of the following is an example of a period cost? Maintenance on factory machines O Wages…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: present. What is the cost of direct material used?
A: Direct material used = Opening Stock + Raw materials purchased - Closing Stock
Q: Which of the following is not part of manufacturing overhead for producing a computer? a.…
A: Answer: Option c.
Q: Which of the following costs would be considered a period rather than a product cost in a…
A: The product costs are the costs that are directly or indirectly related to the production process.…
Q: Direct labor cost incurred during the period? Cost of goods placed in process? Cost of goods…
A: Prime costs in the business means direct materials and direct labour costs incurred in business.…
Q: How do you determine the working capital needs of a parts stor
A: Working capital is the amount by which the current assets exceed current liabilites. In…
Q: What is the unit cost of the goods transferred to the storeroom if the loss is charged to total…
A: Given is: Job units = 500 Direct materials = $80000 Direct labour = $30000 Factory Overhead = 50% of…
Q: cost of equipment?
A: Purchase term 2/10, n/30 means 2% discount is available for payment within 10 days, the credit…
Q: The cost of maintaning and repairing equipment in plant * O Product Cost Period Cost
A: Period Costs Period costs are the costs incurred which are not directly related to the production…
Q: Which of the following is an example of a cost that varies in proportion to changes in the activity…
A: Packaging costs is the variable cost which varies with the total output. It will increase with the…
Q: How does the materials requisition help safeguard a company’s assets?
A:
Q: Which element of the value chain would depreciation on a factory be classified as? Design…
A: Depreciation on factory would be classified as production
Q: The cost of insurance on the plant building Product Cost O Period Cost
A: Costs that a company incurs for manufacturing a product that will be sold to the consumer are known…
Q: Which of the following costs may be classified as non-manufacturing costs? į Fuel costs of the…
A: Non manufacturing costs are the costs that are not related to manufacturing. The following costs may…
Q: Define cost of equipment.
A: Definition: Assets: These are the resources owned and controlled by business and used to produce…
Q: Which of the following is not part of the manufacturing overhead for producing a computer?…
A: Manufacturing overhead means all the indirect factory costs incurred in the manufacturing process of…
Q: Determine the cost of the machine.
A: It is pertinent to note that as per IAS 16 all the costs that are incurred for an asset in order to…
Q: What was the acquisition cost of the equipment?
A: Given the salvage value = 15000 Useful life = 10 years Depreciation for 4th year = 63636 If the…
Q: What are two additional types of costs incurred to support any manufacturing project?
A: The manufacturing companies are the companies which deal in the production or change in the raw…
Q: Provide the meaning of material cost and the procedure for estimation of material cost
A: Material costs are those costs incurred to produce a product or provide a service. Any product has a…
Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…
A:
Q: What is the cost of materials transferred to finished goods?
A: Finished goods: These are the goods that have crossed the boundary of the manufacturing process or…
Q: How is the cost of units normally lost reflected in the manufacturing cost for the period?
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: What is the formula used to determine the amount of direct materials to be purchased?
A: Direct materials: Direct materials are the materials and supplied that are directly consumed for…
Q: Which of the following is a part of Prime Cost? a. Direct Labour b. Indirect Wages c. Rent of…
A: Prime cost includes all the direct costs such as direct material, direct labor, and direct expenses.…
Q: Should design of cost be calculated in factory overhead costs incurred? Explain why
A: The answer for the question on cost design is discussed hereunder : Design of Cost aims at reducing…
Q: How much is the cost of goods manufactured in department B?
A:
Q: Explain the concept of cost allocation as it pertains to property, plant, and equipment and…
A: Property, Plant & Equipment (PPE) includes the following assets namely: Land Plant and Building…
Q: Which of the following is a direct cost with respect to producing a motor car? a. Cost of car engine…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Which of the following is a direct cost with respect to producing a motor car? a. Cost of car engine…
A: Cost accounting:- Cost accounting helps the determine the overall cost that occurred at the time of…
Q: Understand property, plant, and equipment and its related costs.
A: Business have several assets such as cash, inventories, accounts receivables, investments, PPEs…
Q: Which costs might be included in the initial cost of equipment?
A: Property, plant and equipment: Property, plant and equipment are the tangible assets which are…
Q: correct cost of the building?
A: In this case, company have to recognize 3 fixed asset:- Land Building Equipment
Q: Which of the cost below is not classified as fixed cost? a) Depreciation of machine b)…
A: Fixed cost is the cost which remains fixed irrespective of actual production .
Q: What is the process of allocating the cost of a plant asset over its useful life called?
A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…
Q: Which of the following is a direct cost with respect to producing a motor car? a. Salary of…
A: The question requires us to find Direct cost with respect to producing a motor car.
Q: What are the elements of cost of an item of property, plant and equipment
A: Property, plant, and equipment are the fixed assets that are reported on the assets side of the…
Q: 2 Which of the following is least likely to be classified as a facility level activity in an…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: What would the "cost of designing a new plant layout" for an airplane manufacturing company be…
A: The different type of cost associated with the manufacturing companies are product cost and period…
Q: a) What was the amount of direct materials used in production? b) What was the amount of…
A:
Q: Define cost of construction.
A: Determination of cost: The procurement or acquisition cost of “property, plant and equipment”…
Q: What manufacturing cost term is used to describe the cost of materials that are an integral part of…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: What is factory equipment an example of? A. A liability B. Revenue C. An expense D. An asset
A: Answer - Meaning of Asset - An asset is a resource that owned or controlled by a company which…
What is the cost of the building?
What is the cost of machinery and equipment?
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- Balance Sheet Presentation The following information relates to the assets of Westfield Semiconductors as of December 31, 2019. Westfield uses the straight-line method for depreciation and amortization. Required: Use the information above to prepare the property, plant, and equipment and intangible assets portions of a classified balance sheet for Westfield.Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
- Comprehensive: Balance Sheet, Schedules, and Notes The following is an alphabetical listing of Stone Boat Companys balances sheet accounts and account balances on December 31, 2019: Additional information: 1. The company reports on the balance sheet the net book value of property and equipment and long-term liabilities (known as control accounts). The related details are disclosed in the notes. 2. The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, 29,500; buildings, 164,600; store fixtures, 72,600; and office equipment, 30,000. 3. The accumulated depreciation breakdown is as follows: buildings, 54,600; store fixtures, 37,400; and office equipment, 17,300. 4. The long term debt includes 12%, 36,000 face value bonds that mature on December 31, 2024, and have an unamortized bond discount of 1,000; 11%, 48,000 face value bonds that mature on December 31, 2025, have a premium on bonds payable of 1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of 6,200 and matures on January 1, 2022. 5. The non-interest-bearing note receivable matures on June 1, 2023. 6. Inventory is listed at lower of cost or market; cost is determined on the basis of average cost. 7. The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%, 50,000, 15-year bonds issued by this affiliate, Jay Company. 8. Common stock has a 10 par value per share, 10,000 shares are authorized, and 1,000 shares were issued during 2019 at a price of 13 per share, resulting in 8,000 shares issued at year-end. 9. Preferred stock has a 50 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2019 at a price of 55 per share, resulting in 640 shares issued at year-end. 10. On January 15, 2020, before the December 31, 2019, balance sheet was issued, a building with a cost of 20,000 and a book value of 7,000 was totally destroyed. Insurance proceeds will amount to only 5,000. 11. Net income and dividends declared and paid during the year were 50,500 and 21,000, respectively. Required: 1. Prepare Stone Boats December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare a statement of shareholders equity for 2019. (Hint: Work back from the ending account balances.) 3. Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities, and subsequent events. 4. Next Level Compute the debt-to-assets ratio at the cud of 2019. What is your evaluation of this ratio if it was 39% at the end of 2018? Use the following information for P415 and P416: McCormick Company, Inc. is one of the worlds leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with sonic of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormicks consolidated balance sheets for 20X2 and 20X3 follow.Selected accounts included in the property, plant, and equipment section of Lobo Corporation’s balance sheet at December 31, 2019, had the following balances. LandLand improvementsBuildingsEquipment $300,000140,0001,100,000960,000 During 2020, the following transactions occurred. 1. A tract of land was acquired for $150,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 20,000 shares of Lobo’s common stock. On the acquisition date, Lobo’s stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota’s books at $110,000 for land and $320,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $230,000 and $690,000. 3. Items of machinery and equipment were purchased at a total cost of $400,000. Additional costs were incurred as follows. Freight and…At December 31, 2019, certain accounts included in the property, plant, and equipment section of Blue Spruce Corporation’s statement of financial position had the following balances: Land $309,730 Buildings—Structure 882,700 Leasehold Improvements 704,930 Equipment 844,920 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,790 plus a fee of $6,780 to the real estate agent for finding the property. Costs of $33,140 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,950. 2. Land site No. 622, which had a building on it, was acquired for $559,950. The closing statement indicated that the land’s assessed tax value was $308,680 and the building’s value was $101,830. Shortly after acquisition, the building was demolished at a cost of $27,640. A new building was constructed for $339,530 plus the following costs: Excavation fees $37,960 Architectural design…
- Comprehensive At December 31, 2018, certain accounts included in theproperty, plant, and equipment section of Townsand Company's balancesheet had the following balances: LandBuildingsLeasehold improvementsMachinery and equipment $100,000800,000500,000700,000 During 2019, the following transactions occurred: 1. Land site number 621 was acquired for $1,000,000. Additionally,to acquire the land, Townsand paid a $60,000 commission to a realestate agent. Costs of $15,000 were incurred to clear the land.During the course of clearing the land, timber and gravel were recovered and sold for $5,000.2. A second tract of land (site number 622) with a building wasacquired for $300,000. The closing statement indicated that theland value was $200,000 and the building value was $100,000.Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs: Excavation feesArchitectural design feesBuilding permit fee…At December 31, 2019, certain accounts included in the property, plant, and equipment section of Concord Corporation’s statement of financial position had the following balances: Land $309,520 Buildings—Structure 882,660 Leasehold Improvements 704,970 Equipment 844,620 During 2020, the following transactions occurred: 1. Land site No. 621 was acquired for $799,820 plus a fee of $6,880 to the real estate agent for finding the property. Costs of $33,270 were incurred to clear the land. In clearing the land, topsoil and gravel were recovered and sold for $10,720. 2. Land site No. 622, which had a building on it, was acquired for $559,550. The closing statement indicated that the land’s assessed tax value was $308,860 and the building’s value was $101,820. Shortly after acquisition, the building was demolished at a cost of $27,990. A new building was constructed for $339,860 plus the following costs: Excavation fees $37,550 Architectural design fees…At December 31, 2019, certain accounts included in the property, plant, and equipment section of Reagan Company’s balance sheet had the following balances. Land Buildings Leasehold improvements Equipment $230,000 890,000 660,000 875,000 During 2020, the following transactions occurred. 1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. 2. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $330,000 plus the following costs. Excavation fees Architectural design fees Building permit fee Imputed…
- The draft balance sheet of Tere Corporation as of December 31, 2019 reported the net property, plant and equipment at P110,000,000. Details of the amount follow: Land at cost P10,000,000Building at cost P50,000,000Less accumulateddepreciation at 12/31/18 (20,000,000) 30,000,000Plant at cost 94,500,000Less accumulateddepreciation at 12/31/18 (24,500,000) 70,000,000 110,000,000The following matters are relevant:• On 30 June 2019, Tere terminated the production of one of its product lines. From this date, the plant used to manufacture the product has been actively marketed at an advertised price of P4.2 million which is considered realistic. Assume that this plant qualified as held for sale in accordance withPFRS 5. It is…Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following: Land P 400,000 Buildings 3,200,000 The following transactions occurred during 2020: Land site number 102 was acquired for P4,000,000. Additionally, to acquire the land the entity paid a P240,000 commission to a real estate agent. Costs of P60,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P20,000. A second tract of land (site number 103) with a building was acquired for P1,200,000. Based on reliable information at the time of acquisition, fair value of land is P800,000 and the building P400,000. Shortly after acquisition, the building was demolished at a cost of P120,000. A new building was constructed for P1,600,000 plus the following costs: Excavation fees P 44,000 Architectural design fees 32,000 Building permit…Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following: Land P 400,000 Buildings 3,200,000 The following transactions occurred during 2020: Land site number 102 was acquired for P4,000,000. Additionally, to acquire the land the entity paid a P240,000 commission to a real estate agent. Costs of P60,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P20,000. A second tract of land (site number 103) with a building was acquired for P1,200,000. Based on reliable information at the time of acquisition, fair value of land is P800,000 and the building P400,000. Shortly after acquisition, the building was demolished at a cost of P120,000. A new building was constructed for P1,600,000 plus the following costs: Excavation fees P 44,000 Architectural design fees 32,000 Building permit…
