All categories

3 years ago

The allegheny corporation purchased machinery for

1 answer:

6 0

The complete information is that on January 1 2016 the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. With that in mind, the machine is expected to produce 220,000 units during its life. In that case we can calculate a depreciation for 2016 and 2017 and doing it with one of the methods which is called Straight-Line Depreciation which states that:
<span>Choose Numerator: / Choose Denominator: = Annual Depreciation Expense </span>
<span>Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense </span>

You might be interested in

The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi

ValentinkaMS [17]

Answer:

Process Costing

Explanation:

Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.

7 0

4 years ago

Influenced by a firm’s ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to

DochEvi [55]

Answer:

The correct answer is: high.

Explanation:

In economics, interest rate is the amount paid in a unit of time for each unit of capital invested. It can also be said that it is the interest of a unit of currency in a unit of time or the performance of the unit of capital in the unit of time.

Interest rates are applied in different ways, for different periods of time, so it is important that you know what type of fee they are charging you. Also if interest will be paid at the beginning or end of the loan.

The most used interest rates are the nominal interest rate and the effective or equivalent annual interest rate.

Nominal interest rate:

This rate is simple interest, and corresponds to the percentage that will be added to the initial capital as compensation for a certain period of time, which does not necessarily have to be one year.

Effective annual interest rate:

It is also known as the equivalent annual interest rate, it is a compound interest rate, including the nominal interest rate, bank charges and fees, and the term of the operation. This rate addresses the full compensation the financial entity receives for lending us the money.

8 0

3 years ago

Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $315

Lady bird [3.3K]

Answer:

(a) Straight-line depreciation.

depreciation expense per year = ($315,900 - $15,900) / 4 = $75,000

(b) Activity method for 2014 and 2015, assuming that machine usage was 15,000 hours for 2014; 11,710 hours for 2015; 12,150 hours for 2016 and 1,140 hours for 2017.

depreciation expense per unit = $300,000 / 40,000 = $7.50 per unit

depreciation expense 2014 = $7.50 x 15,000 = $112,500

depreciation expense 2015 = $7.50 x 11,710 = $87,825

depreciation expense 2014 = $300,000 x 4/10 = $120,000

depreciation expense 2015 = $300,000 x 3/10 = $90,000

(d) Double-declining-balance.

depreciation expense 2014 = $315,900 x 2 x 1/4 = $157,950

depreciation expense 2015 = $157,950 x 2 x 1/4 = $78,975

depreciation expense 2016 = $78,975 x 2 x 1/4 = $39,487.50

depreciation expense 2017 = $39,487.50 - $15,900 = $23,587.50

6 0

3 years ago

Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units.

agasfer [191]

Answer:

Preparation of merchandise purchases budgets for the months of July, August, and September is shown below:-

Explanation:

Walker Company

Merchandises Purchase Budget

For July, August , September

July August September

Budgeted ending inventory units 47,250 40,500 30,000

Add: Budgeted unit sales for month 180,000 315,000 270,000

Required units available inventory 227,250 355,500 300,000

Less: Beginning inventory units 27,000 47,250 40,500

Units to be purchased 200,250 308,250 259,500

Working Note 1

September required units

Ending inventory 30,000

Add: Budgeted sales 270,000

Total required in September 300,000

Working Note 2

September Beginning inventory

Total required 300,000

Less: Budgeted purchases 259,500

September beginning inventory 40,500

Working Note 3

Beginning inventory of September = Ending inventory of August

Working Note 4

August required units

Ending inventory 40,500

Add: Budgeted sales 315,000

Total required in August 355,500

Working Note 5

August beginning inventory

Total required 355,500

Less: Budgeted purchases 308,250

August beginning inventory 47,250

Working Note 6

Beginning inventory of August = Ending inventory of July

Working Note 7

July required units

Ending inventory 47,250

Add: Budgeted sales 180,000

Total required in July 227,250

Working Note 8

July beginning inventory

Total required 227,250

Less: Budgeted purchases 200,250

July beginning inventory 27,000

8 0

3 years ago

Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa

lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.

3 0

3 years ago