The classified balance sheet will show which asset subsections?
b. current assets and property, plant, and equipment
Assests are divided into current assets and PPE, Thus there are going to be 2 sections in assets sides.
Answer:
Annual depreciation= $5,865,714.29
Explanation:
Giving the following information:
Purchase price= $41,100,000
Salvage value= $40,000
Useful life in hours= 28,000
<u>To calculate the depreciation expense for 2024, we need to use the following formula:</u>
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(41,100,000 - 40,000) / 28,000]*4,000
Annual depreciation= $5,865,714.29
Explanation:
The computation is shown below:
1. For Predetermined overhead rate
Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)
where,
Total estimated direct manufacturing cost is
= $166,400 × 4 months
= $665,600
And, the total number of units is
= 4,700 units + 8,700 units + 4,300 units + 7,900 units
= 25,600 units
So, the predetermined overhead rate is
= $665,600 ÷ 25,600 units
= $26 per unit
2. Now the allocated cost for each month is shown below:
For January
= 4,700 units × $26
= $122,200
For February
= 8,700 units × $26
= $226,200
For March
= 4,300 units × $26
= $111,800
For April
= 7,900 units × $26
= $205,400
c. Now the total cost per unit is
= $22 + $26
= $48 per unit
<span>An economic system is a system of production, resource allocation, and distribution of goods and services within a society or a given geographic area.</span>
