Dorman company purchased a new machine for its production process. The following costs were incurred for the new machine. Training costs for workers who will operate the machine $15,000 Wages paid to workers who operate the machine during production 109,000 Ordinary repairs to the machine before the first production run 1,000 1 Cost of platform used to properly secure the machine 30,000 Costs of tests run which took place before the first production run 8,000 WHICH COSTS SHOULD BE ADDED TO THE COST OF MACHINE?
Q: Mix ‘Em Up engages in research to develop cures for famous diseases. Costs incurred during…
A: Since you have asked two different questions under a single question. As per protocol we are…
Q: Belpre Inc. constructed a new office building. Building material costs for the new building were…
A: Cost of the self-constructed building includes material costs , labour costs , allocated overhead…
Q: Assume a (hypothetical) company, Troff erini S. A., incurred the following expendituresto purchase a…
A: While acquiring a Property plant and Equipment, costs which are necessary to bring the asset in…
Q: Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for…
A: Financial statements that describe the operations and financial performance of a company. Financial…
Q: Holiday Laboratories purchased a high speed industrial centrifuge at a cost of $420,000. Shipping…
A: Capitalized cost is the cost incurred to purchase the asset. It includes not only the purchase…
Q: A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value Is Installed…
A: Depreciation under straight-line method = ( Historical cost- Salvage value)/Useful life Depreciation…
Q: Freebird Inc acquired a truck to transport its inventory from the port to its various stores. The…
A: The cost of assets is as under:Cost of truck" 125000Add: tax and licencing12000Add: paint cost of…
Q: Manny Company uses many kinds of machines in its operations. The following information relates to a…
A: Any cost that will have economic life in future and last for more than a year should be capitalized.…
Q: At the beginning of the year, Grillo Industries bought three used machines from Freeman…
A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…
Q: AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: ash paid for machine, including VAT of P96,000 ost of transporting machine ost of installation ost…
A: In order to compute capitalized cost of machine, All cost which are directly related bringing the…
Q: Shantal Company is installing a new equipment and incurred the following costs: Cost of equipment…
A: Acquisition Cost of Equipment: Cost of acquisition is a term that refers to the entire cost of…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Depreciation is charged on value of assets for the normal wear and tear expense and for the repair…
Q: Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be…
A: Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be…
Q: Immortality Co. made the following expenditures relating to a newly invented product Legal and…
A: (1) Legal and registration costs related to a patent on the product 120,000 will be capitalized to…
Q: AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x…
A: Working Hour Method Depreciation Calculation of working hour method which can be consider the total…
Q: A company purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x).…
A: Rate of depreciation under double-declining balance method = (1/N)*100*2 Where N is the number of…
Q: A company purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x).…
A: Service Output Method Service output method which is also called working hour method depreciation…
Q: The Italian Pizza Company purchased land as a factory site for $90,000. Prior to construction of the…
A: The land is the fixed asset for company which does not attach any amount of depreciation to it. New…
Q: The accountant at industrial system Incorporated (ISI) decided to depriciate some new production…
A: The question is related to Cost of Asset and Depreciation Accounting. The company purchased three…
Q: A machine costing $209;600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight line depreciation = ( Initial Cost - Salvage Value ) / Estimated useful life…
Q: Rundle Company makes and sells lawn mowers for which it currently makes the engines. It has an…
A: Special order decisions: Special order decisions include circumstances in which the board must…
Q: Zachary Company makes and sells lawn mowers for which it currently makes the engines. It has an…
A: If Zackary Company buys the engines from the manufacturer, Cost of Material Cost of Labor…
Q: At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x). It is…
A: Depreciation seems to be an accounting method for assigning costs of a physical or tangible asset…
Q: Waterway Co. purchased land as a factory site for $536,000. The process of tearing down two old…
A: The land is recorded at its original cost which also includes expenditures related to its…
Q: purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x (01). It…
A: In sinking fund method of depreciation is based on sinking fund factor and annual depreciation. In…
Q: The following information relates to a machine constructed by ABC Company: Cost of materials to…
A: When machinery is built inside an organization, it is recorded at the value that includes all of the…
Q: Rona Company provided the following charges to the “repair and maintenance account”. Service…
A: Notes: Initial design fee is not yet recorded since there is no extension of the office building…
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x). It is…
A: Depreciation under straight-line method = (Historical cost - Salvage value)/Useful life Net Book…
Q: Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the…
A: GIVEN Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the…
Q: rchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x (01). It…
A: In service output method depreciation there is depreciation based on the hours of use.
Q: hachine that was acquired at the beginning of the current year: ash paid for machine, including VAT…
A: In order for the cost to be capitalised, all those cost are included which are incurred to bring the…
Q: AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x…
A: Sum of years Digital method: It is the percentage of depreciation for each year and accelerate the…
Q: R Company made the following expenditures Initial design fee for proposed extension of office…
A: Assets are capitalized by all cost that incurred on purchasing and increasing the capability of…
Q: Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $460,000. Shipping…
A: This question deals with the IAS 16 "property, plant and equipment" An PPE purchase initially should…
Q: Tumeng Co. acquired a piece of equipment for 1,000,000 and incurred the following additional costs:…
A:
Q: AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x…
A: The sum-of-the-years' digits (SYD) approach is a faster way to figure out how much an item is worth.…
Q: Belpre Inc. constructed a new office building. Building material costs for the new building were…
A: Borrowing cost means where the assets like building , take substantial time to build , then interest…
Q: On 1 June 20X1, Galaxy Co. purchased a new machine for use in its factory. The directors have…
A: Along with purchase price following cost is also capitalised with the cost of Property Plant &…
Q: Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for…
A: For computing cost of the machine, all cost directly related to machinery until it is put to use…
Q: Mang Juan purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x).…
A: SOLUTION FORMULA- SUM OF YEAR OF DIGIT = n(n+1) / 2. =…
Q: AEC purchased an equipment for its manufacturing plant that costs PHP 3, 750 000 + PHP 10,000 x…
A: In this method the cost is depreciated equally over the number of units produced during the period.
Q: Maxtor Technology incurred the following costs during the year related to the creation of a new type…
A: Research and development costs: Research and development costs refers to the expenditures spent on…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight Line Method: It is the method of depreciation, the process of expensing an asset over a…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight-line Depreciation = (Original Cost - Salvage Value) / Useful Life Units of Production…
Q: SInking Fund Method (i=8%) -book value at the end of the 1st year
A: Depreciation is a charge which is charged on the fixed asset because this depreciation represents…
Q: Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping…
A: Total cost of the equipment = Cost of Purchase + Shipping costs + Foundation work + Testing expense
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor: Salaries $220,000 Depreciation on R&D facilities and equipment Utilities and other direct costs incurred for the R&D facilities Patent filing and related legal costs Payment to another company for performing a portion of the development work Costs of adapting the new monitor for the specific needs of a 125,000 66,000 22,000 120,000 80,000 customer What amount should Maxtor report as research and development expense in its income statement?Bonus Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is A. 4,900,000 B. 5,200,000 C. 4,200,000 D. 4,980,000During the current year, Beta Company incurred the following costs related to a new solar-powered car: Salaries of laboratory employees researching how to build the new car 2,500,000 200,000 Legal fees for the patent application for the new car Engineering follow-up during the early stage of commerical production during the current year Marketing research to promote the new car Design, testing and construction of a prototype 500,000 300,000 4,000,000 What amount should be reported as research and development expense? a. 7,500,000 b. 6,500,000 C. 2,500,000 d. 7,200,000
- Extra Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine is Group of answer choices P5,200,000 P4,980,000 P4,900,000 P4,200,000R Company made the following expenditures Initial design fee for proposed extension of office building 150.000 New condenser for central conditioning unit 10,000 Purchase of executive chairs and desks 200.000 Purchase storm windows and screens and their Installation on all office windows 500.000 80.000 Sealing of roof leaks in production area Replacement of door to production area Installation of automatic door opening 50,000 system 200 000 Overhead crane for assembly department to speed up production 350.000 Replacement of broken gear on machine 60.000 What total amount should be charged to repair and maintenance expense ?Wolfe Assembly Masters developed a new cost- and time-efficient assembly process that would be advantageous to many manufacturing companies. To protect their process, they applied for and obtained a patent. Which of the following costs associated with the assembly process should Wolfe amortize as an intangible asset? $12,000 in disposal fees to remove hazardous waste collected during research and development $1.56 million in development costs to develop the process $37,000 to apply for a patent for the process $914,000 in research costs to learn about the process
- JOOVI Inc. has recently purchased and installed a new machine for its manufacturingplant. Th e company incurred the following costs:Purchase price $12,980Freight and insurance $1,200Installation $700Testing $100Maintenance staff training costs $500Th e total cost of the machine to be shown on JOOVI’s balance sheet is closest to:A. $14,180.B. $14,980.C. $15,480.A company purchased a special purpose machine on August 1st of the previous year. It was installed and ready to run on January 1st of the current year. The following costs were incurred in the purchase and installation of the machine: Invoice price $1,200,000 Freight costs 6,000 Installation costs 64,000 Electrical and power connections 32,000 Repairs to correct damage during uncrating 12,000 Costs to adjust machine to appropriate specifications 56,000 Costs of spare parts for future use 108,000 Sales tax 70,500 Cost of…Rundle Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (15,000 Units x $13) Labor (15,000 Units x $25) Depreciation on manufacturing equipment* Salary of supervisor of engine production Rental cost of equipment used to make engines $ 195,000 375,000 40,000 74,000 19,000 80,000 783,000 The equipment has a book value of $107,000 but its market value is zero. Allocated portion of corporate-level facility-sustaining costs Total cost to make 15,000 engines Required a. Determine the maximum price per unit that Rundle would be willing to pay for the engines. b. Determine the maximum price per unit that Rundle would be willing to pay for the engines, if production increased to 18,000 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit
- Olivia Company was installing new equipment at its production facility and incurred the following costs: Cash price of the equipment, VAT inclusive of 12% 2,800,000 Initial delivery and handling cost 200,000 Cost of site preparation 600,000 Consultant used for advance on the acquisition of equipment 700,000 Interest charges paid to supplier for deferred credit 200,000 Estimated dismantling cost that may be incurred upon retirement 300,000 Operating losses before commercial production 400,000Shantal Company is installing a new equipment and incurred the following costs: Cost of equipment per supplier’s invoice 2,500,000 Initial delivery and handling cost 200,000 Cost of site preparation 600,000 Consultants used for advance on the acquisition of equipment 700,000 Interest charged paid to supplier for deferred credit 200,000 Estimated dismantling cost to be incurred as required by contract 300,000 Operating losses before commercial production 400,000 Group of answer choices 4,300,000 4,000,000 4,200,000 4,500,000On 1 June 20X1, Galaxy Co. purchased a new machine for use in its factory. The directors have capitalised the purchase price but are unsure how to treat the following related costs. 350,000 was spent on testing whether the machine was functioning properly. During the testing period (June — October 20X1), samples were produced and sold for a total of 75,000. 400,000 was also spent on training existing employees how to operate the new machine. The machine is being used to manufacture a new product, Product C and 1 million was spent on advertising this new product. Testing was completed and commercial production of Product C commenced on 31 October 20X1. Required: Advise Galaxy on how the above transactions should be dealt with in its financial statements for the year ended 31 December 20X1.