SURVEY OF ACCOUNTING-ACCESS >CUSTOM<
4th Edition
ISBN: 9781259822179
Author: Edmonds
Publisher: MCG CUSTOM
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Question
Chapter 10, Problem 10E
a.
To determine
Recognize the event that signifies the
b.
To determine
The reason for recognizing depreciations on tools used in manufacturing industries affects the financial statements differently and identifies the depreciation on tools used in service industry.
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QUESTION 17
Which entry would be used to record depreciation on manufacturing equipment:
Debit Credit
O
O
O
Manufacturing Overhead XXX
Accumulated Depreciation
XXX
Debit Credit
Depreciation Expense XXX
Manufacturing Overhead
XXX
Debit Credit
Accumulated Depreciation XXX
Manufacturing Overhead
XXX
Debit Credit
Manufacturing Overhead XXX
Depreciation Expense
XXX
In a manufacturing company, which of the following will affect gross profit?
A change in the depreciation policy applied to production equipment
Insurance paid on delivery vehicles
Reduction in the overdraft interest rate
Cost of training finance staff on the use of an accounting package
In Principles of Accounting I, we learned the journal entry for depreciation is:
Debit – Depreciation Expense $X,XXX
Credit – Accumulated Depreciation - (asset) $X,XXX
1) How is depreciation recorded differently under job order costing and how would you explain the difference to a non-accountant?
2) Suppose you had to record depreciation of $700 on factory equipment and $225 on office equipment. What would the journal entry look like?
Chapter 10 Solutions
SURVEY OF ACCOUNTING-ACCESS >CUSTOM<
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Identifying product versus general, selling, and...Ch. 10 - Classifying costs: Product or SG&A cost; asset or...Ch. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Prob. 7ECh. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Value chain analysis (Appendix)
Audiomax Company...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 1ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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Similar questions
- A manufacturing plant use for manufacturing a discontinued product is classified on the balance sheet as... Group of answer choices Inventory Other Assets Long-Term Investment Property, Plant, and Equipmentarrow_forwardDepreciation of a factory equipment is treated as ? While depreciation of an automobile used for sales staff is treated as?arrow_forwardDepreciation expense on an office copier used by the CEO in the administrative building is a product cost and a noncash expense. O True Falsearrow_forward
- Within the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self…arrow_forwardPLEASE ANSWER ALL OF THE ITEMS TRUE OR FALSE 4. Determining the unit cost of manufacturing a product is an output of management accounting.5. Management accounting internal reports are prepared less frequently than classified financial statements.6. With the emergence of the information era, companies need to create value from their intangible assets as well as their physical and financial assets.arrow_forwardMa4. TB MC Qu. 12-42 (Static) Select the incorrect statement... Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment. Multiple Choice Recognizing depreciation on manufacturing equipment is an asset exchange event. Incorrect Depreciation on manufacturing equipment is an indirect product cost. Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the Manufacturing Overhead account. If the equipment was used to work on a job, the amount of depreciation must be entered on the appropriate job cost sheet.arrow_forward
- Which one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contractsarrow_forwardState and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental utilities 3.R & D costs 4.Equipment & buildings-costs 5.Raw materials in stock 6.Sales of the product 7.Inventory-Finished goodsarrow_forwardDepreciation expense on equipment a could be either a product cost or a period cost, depending on whether it is factory equipment or office equipment that is being depreciated. • b. is neither a product or a period cost. • c. is always a period cost• d. is always a product costarrow_forward
- How should an expenditure for an ordinary repair to factory equipment be recorded? Question 10 options: Debited to accumulated depreciation. Debited to an asset account but not depreciated over future years. As an expense in the period incurred. Debited to an asset account and depreciated over the current and future years.arrow_forward29- Identify which of the following is classified as a revenue expenditure a. Cost of purchase of Machine b. Installation expense paid for fixing the machine c. Expense incurred for repairing the machine d. Import duty paid for importing the machinearrow_forwardFor the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a productarrow_forward
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