Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Benson Corporation manufactures model airplanes. The company purchased for $166,000 automated production equipment that ca make the model parts. The equipment has a $12,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would mak on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit
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- Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Thornton Corporation manufactures model airplanes. The company purchased for $173,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 9-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Credit Manufacturing Overhead Debit Credit Debit Depreciation Expense Creditmework Assignment i es C CON Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Exercise 8-4 Straight-line depreciation LO P1 Esc Straight-Line Depreciation Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Choose Numerator: / Cost minus salvage $ Year 2 Depreciation Year end book value (Year 2) F1 F2 40,500/ Estimated useful life (years) $ ✔ F3 Choose Denominator: # Dashboard F4J 10 4,050 Prev. F5 % = = E Paraphrasing Tool .... Annual Depreciation Expense 1 Depreciation expense $ Saved S 2 3 F6 G A C logitech 4,050 of 9 F7 & Excelsior…Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Rundle Corporation manufactures model airplanes. The company purchased for $143,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Depreciation Expense Credit Credit Manufacturing Overhead Debit Credit
- Exercise 10-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.View Policies Current Attempt in Progress Marigold Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 1 Purchased raw materials on account $49,100. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,900 was classified as indirect materials. Factory labor costs incurred were $61,900. Time tickets indicated that $55,300 was direct labor and $6,600 was indirect labor. Manufacturing overhead costs incurred on account were $81,900. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $93,900 were completed and transferred to finished goods. Finished goods costing $76,400 to manufacture were sold. Record the transactions. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) ..Brief Exercise 8-4 (Algo) Depreciation expense using the units-of-production method LO 8-4 Clean Air Company makes and sells cloth masks. The company purchased a new automated sewing machine at the beginning of Year 1 for $74,000. The machine is expected to have a two-year useful life and a $20,400 salvage value. The expected mask production is estimated at 107,200 masks. Actual print production for the two years was as follows: Year 1 Year 2 Total 59,000 52,000 111,000 Required: Compute the depreciation expense for each of the two years, using units-of-production depreciation. Depreciation expense Year 1 Year 2
- Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0Exercise 10-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $10,900, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $109 discount. Transportation costs of $246 were paid by Rizio. The machine required mounting and power connections costing $754. Another $355 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $220 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.1 Check my work S Purchase price Delivery cost Installation charge Estimated life $ 55,800 $ 4,000 Estimated units Salvage estimate $ 2,000 5 years 142,000 $ 5,000 During Year 1, the machine produced 38,000 units, and during Year 2 it produced 40,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 12345678 32.00 24.49 19.20 17.49 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46
- Exercise 14-07 National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect materials Depreciation on delivery equipment Dispatcher's salary $7,100 Drivers' salaries 12,300 5,260 910 13,000 2,600 Period costs Advertising Delivery equipment repairs Office supplies Office utilities Repairs on office equipment $16,200 5,400 390 720 1,060 220 Property taxes on office building CEO's salary Gas and oil for delivery trucks Determine the total amount of (a) delivery service (product) costs and (b) period costs. Delivery service (product) costsExercise 9-02 Adama Company incurred the following costs.Indicate to which account Adama would debit each of the costs. 1. Sales tax on factory machinery purchased $5,000 Select the account to be debited BuildingPrepaid InsuranceLandEquipmentLand Improvements 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited LandBuildingEquipmentLand ImprovementsPrepaid Insurance 3. Installation and testing of factory machinery 2,000 Select the account to be debited BuildingLand ImprovementsPrepaid InsuranceLandEquipment 4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Land ImprovementsPrepaid InsuranceEquipmentBuildingLand 5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited Prepaid InsuranceEquipmentLand ImprovementsBuildingLand 6. Cost of landscaping on property purchased 7,200…QUESTION FOUR Richy Limited has plant that cost R345 000 on 01 January 2016. Installation andmodification costs R69 000 (including vat). Transfer costs paid to lawyer amounted toR20 000. Transport costs for bringing the asset to location amounted to R20 000. Theplant was ready for use on 01 January 2016. The machines were cleaned on 01 March2016 at a cost of R10 000. Due to the low order levels in April 2016 the plant stood idle.Depreciation is provided over its useful life of 5 years using the straight-line method to anil residual value. Richy Limited measures plant under the revaluation model. The plant was revalued asfollows: 31 December 2016 R310 00031 December 2017 R300 00031 December 2018 R250 000 Richy Limited transfers the maximum amount from the realised portion of therevaluation surplus to equity. VAT must be calculated at 15%.Required:Disclose the above information in the notes to the financial statements for years ending2016, 2017 and 2018. (Include in you answer the…