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rjkz [21]
3 years ago
9

The Cheese Factory incurred the following costs related to acquiring a new piece of equipment: Cost of the equipment $ 50,000 Sa

les tax (8%) 4,000 Shipping 3,000 Installation 2,000 Depreciation during the first month 1,000 Total costs $ 60,000 What is the total recorded cost of the equipment?
Business
2 answers:
kakasveta [241]3 years ago
4 0

Answer:

The multiple choices missing from the question are:

a. $60,000.

b. $50,000.

c. $57,000.

d. $59,000.

Option D,$59000 is correct

Explanation:

The recorded cost of the equipment is made of purchase cost,the sales tax since it is not recoverable,shipping cost as well as the installation cost.

The recorded cost is computed thus:

Purchase price   $50,000

sales tax              $4,000

shipping               $3,000

installation            $2,000

total  cost            $59,000

The rationale for including shipping and installation costs is that asset cost should include cost of bringing the asset to current location(shipping) and condition(installation)

neonofarm [45]3 years ago
3 0

Answer:

$59,000

Explanation:

The accounting standard for fixed asset under IFRS IAS 16 Property, plant and equipment (PPE) requires that an element of PPE be recognized at historical cost which includes all the cost incurred to bring the item of PPE to a state or place where the item becomes available for use.

These costs includes cost of purchase, freight, Installation sales tax etc.  

Total recorded cost of the equipment

= $50,000 +$4,000 + $3,000 + $2,000

= $59,000

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Using this table, calculate the marginal cost of each of
alexandr402 [8]

Answer:

See below

Explanation:

Marginal cost is the additional expenses incurred in producing one more unit of output. Marginal cost is the expenses associated with the production of one extra unit.

In this case, there will be marginal costs in producing the first item. There is no extra unit in the first unit. Marginal costs will be zero. The second item's marginal cost will be the difference between the cost of the second and the first item.

First bike

=0

The fourth bike:

=Forth bike - third bike

=$130 -$110

= $20

The sixth bike

=sixth - fifth

=$210 -$160

=$50

The seventh bike

=seventh - sixth

=$270 -$210

=$60

5 0
3 years ago
Loss leaders are poorly managed retail companies of outlets. true or false.
Amanda [17]
False. Loss leaders are products that are sold at or below cost in order to lure you into the store.
6 0
2 years ago
Read 2 more answers
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending D
alexdok [17]

Answer:

The year-end adjusting entries for the uncollectible accounts will be:

April 13:

Debit Allowance for doubtful accounts             $6,530

Credit Accounts receivable                                $6,530

<em>(To record write-off of accounts receivable - Dean Sheppard)</em>

May 15:

Debit Cash                                                          $3,270

Credit Accounts receivable                               $3,270

<em>(To record collection on account - Dan Pyle)</em>

Debit Allowance for doubtful accounts            $5,410

Credit Accounts receivable                               $5,410

<em>(To record write-off of accounts receivable - Dan Pyle)</em>

July 27:

Debit Accounts receivable                                $6,530

Credit Allowance for doubtful accounts           $6,530

<em>(To re-establish accounts receivable from Dean Sheppard)</em>

Debit Cash                                                          $6,530

Credit Accounts receivable                               $6,530

<em>(To record collection on account - Dean Sheppard)</em>

December 31:

Debit Allowance for doubtful accounts           $13,330

Credit Accounts receivable                              $13,330

<em>(To record write-off of accounts receivable - Miscellaneous)</em>

Explanation:

  • April 13: Shipway Company wrote-off account of Dean Sheppard, this means there would be a reduction in both allowance for doubtful accounts and accounts receivable.
  • The receipt on May 15 of $3,270 reduced the accounts receivable but increased cash. However, the write-off of $5,410 caused a reduction in both the allowance account and accounts receivable.
  • When there was a receipt of $6,530 on July 27, the accounts receivable would be reinstated and then adjusted for the cash receipt.
  • Lastly, the write-off of the uncollectible accounts from miscellaneous customers were added up to arrive at $13,330.
8 0
3 years ago
Garavelli Industries granted restricted stock units (RSUs) representing 60 million of its $1 par common shares to executives, su
DedPeter [7]
$480 would be your answer because the fair value per share $8 x 60 mil = $480 the $480 mil total compensation is expensed equally over the three-year vesting period reducing earnings by $160 million each year :D
4 0
2 years ago
The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month, 9200 pounds of direct materials that actua
Andrews [41]

Answer:

the direct material quantity variance is $5,000 favorable

Explanation:

The computation of the direct material quantity variance is shown below:

Direct material quantity variance is

= (Actual quantity - standard quantity) × standard price

= (9,200 pounds - 5,100 units × 2 pounds) × $5 per pound

= (9,200 pounds - 10,200 pounds) × $5 per pound

= $5,000 favorable

hence, the direct material quantity variance is $5,000 favorable

6 0
2 years ago
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