A cost associated with renting would be:

The development costs were incurred after technological and commercial feasibility was established and after the future economic

Anarel [89]

Complete Question:

Pribuss Engineering prepares its financial statements according to International Financial Reporting Standards. During 2018, the company incurred the following costs related to a new product design:

Research for New Design $2.4M

DVMPT of New Product $1.3M

Patent Filing Fees $52K

The development costs were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2018 fiscal year. What amount should Pribuss expense in its 2018 income statement related to the above expenditures?

Answer:

The Research expenses of $2.4M that are written as expense in the Income statement and the Development costs of $1.3M and patent legal fees of $53k are capitalized.

Explanation:

The reason is that the International Standard IAS 38 Intangible Assets says that the expenditure incurred on the research that hasn't entered development phase must be written as expense in the year and the expenditure incurred on the development phase of the research outcomes must be capitalized to the extent it is ready for use. In this case $1.3M is clearly a development cost and patent legal fees of $53k is the expenditure that will prepare the asset and making it ready for use, so it must also be capitalized.

8 0

3 years ago

Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%

Tasya [4]

The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?

Answer:

Fixed costs are $480000

Explanation:

The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000

2400000 = Fixed cost / 0.2

2400000 * 0.2 = Fixed cost

Fixed costs = $480000

6 0

4 years ago

‼️‼️ Which of the following statements about international business is the most

Alexandra [31]

Answer: A: International business can be riskier than domestic business but the size of the market makes it a very attractive option.

Explanation:

4 0

3 years ago

Read 2 more answers

Which of "the following employee groups is MOST likely to "be excluded by the NLRB from participating in organizing activities a

Bingel [31]

Answer:

C) Employees with certain supervisory duties

Explanation:

The NLRB organization consists of:

1) The Board – have 5 members and their staff

2) The General Counsel- final and independent authority which is under the Board and has to do investigation of charges and issuance of compliance.

3) The Regional Offices- are located in large cities and are supervised by the General Counsel

NLRB Authority is about the enterprises those affect on the commerce by their operations. There could be included to the commerce: “trade, traffic, transportation, or communication within the District of Columbia or any Territory of the United States; or between any State or Territory and any other State, Territory, or the District of Columbia; or between two points in the same State, but through any other State, Territory, the District of Columbia, or a foreign country”

Supervisors are actually excluded by the NLRB from participating in organizing activities and being a member of the bargaining unit because, he/she could have some interest in favor of employer so there might be inappropriate situations like: to cause another employee to be hired, rewarded, disciplined

5 0

4 years ago

Boilermaker House Painting Company incurs the following transactions for September:

mr Goodwill [35]

Answer:

1) Dr Accounts receivable 11,000

Cr Service revenue 11,000

2) Dr Equipment 12,000

Cr Cash 12,000

3) Dr Supplies 1,700

Cr Accounts payable 1,700

4) Dr Wages expense 2,400

Cr Cash 2,400

5) Dr Advertising expense 1,200

Cr Cash 1,200

6) Dr Rent expense 3,600

Cr Cash 3,600

7) Dr Cash 6,000

Cr Accounts receivable 6,000

8) Dr cash 4,200

Cr Deferred revenue 4,200

Cash Accounts receivable

debit credit debit credit

17,100 800

12,000 11,000

2,400 6,000

1,200 5,800

3,600

6,000

4,200

8,100

Supplies Equipment

debit credit debit credit

320 5,600

1,700 12,000

2,020 17,600

Accounts payable Deferred revenue

debit credit debit credit

700 4,200

1,700

2,400

Common stock Retained earnings

debit credit debit credit

16,000 7,120

Service revenue Rent expense

debit credit debit credit

11,000 3,600

Wages expense Advertising expense

debit credit debit credit

2,400 1,200

Boilermaker House Painting Company

Trial Balance

For the month ended September 30, 202x

debit credit

Cash $8,100

Accounts Receivable $5,800

Supplies $2,020

Equipment $17,600

Accounts Payable $2,400

Deferred revenue $4,200

Common Stock $16,000

Retained Earnings $7,120

Service revenue $11,000

Rent expense $3,600

Wages expense $2,400

Advertising expense $1,200

Totals $40,720 $40,720

7 0

3 years ago