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GarryVolchara [31]
2 years ago
10

Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope

rating hours, and a residual value of $30,000. Compute the depreciation for the first and second years of use by each of the following methods: (a) straight-line (b) units-of-production (2,500 hours first year; 3,250 hours second year) (c) declining-balance at twice the straight-line rate
Business
1 answer:
CaHeK987 [17]2 years ago
8 0

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

= 20% × 2 = 40%   (Because Declining Balance at Twice the Straight Line Rate)

1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

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Hull Company’s record of transactions concerning part X for the month of April was as follows.
olga55 [171]

Answer:1. $7720  

2. $7945

3. $7758

Explanation: 1. First in First out method which means the first inventory to be purchased by company will be the first to be sold.  

Total cost of Sales   = Total number of units Sold * Total Cost of inventory sold    

                                  = 100units*$5+ 300units*$5.30+ 200units*$5.35 + 450units*$5.60

                                   =$7720

Total units sold=1450  we started from first inventory which was the balance of inventory of 100 units downwards up to the 1450th unit sold that was purchased on the 26th of April by the company.

2. Last in first out method is where the last bought inventory is sold first.

Total cost of sales= Total number of units sold * Total cost of units sold =200units$*5.80+ 600units*$5.60+ 200units*$5.35+300units*$5.30+150units*$5.1

=$7945

Total units sold still 1450 but we calculated the cost from the last purchased unit from 30th April to the 1450th unit sold which was on the 12th of April.

3. Average Cost = (Sum of all costs/Total number of costs)* total units sold

                     = (($5+$5.1+$5.3+$5.35+$5.6+$5.8)/6)* 1450

=$7769.58

4 0
3 years ago
3 Points
Maslowich

Answer:

C. An auction market

Explanation:

Option A is wrong because merchant wholesalers purchase any products directly from the manufacturers and sell those to the retailers, or consumers. In that case, buyers and sellers do not need to come together to complete a transaction.

Option B is incorrect as the warehouse club is recognized as a retail store where customers can purchase bulk products to reduce the expenses. In that case, only sell is the motive.

Option D is wrong because drop shippers cannot hold the inventory to their stocks. Therefore, customers and manufacturers will not come together.

<u><em>Option C</em></u> is correct because, in an auction market, the buyer and the seller have to come at the same time to complete a transaction. In that market, the buyer will directly negotiate with the seller to purchase a product or something else.

5 0
3 years ago
Read 2 more answers
Two goods are complements when a decrease in the price of one good a. decreases the quantity demanded of the other good. b. decr
Alex777 [14]

Answer: Option A

Explanation: In simple words, complement goods refers to those goods which are used together for example - diesel and diesel car. If the price of diesel increases then the demand for diesel cars will decrease as the consumers will shift to petrol cars or other such means.

These goods depicts negative relationship between price of one and demand for another.

Hence from the above we can conclude that the correct option is A .

7 0
3 years ago
Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl
ElenaW [278]

Answer:

                                           Karim Corp

                                          <u>Cash Budget</u>

                                                 July              August         September

Cash inflows:                         $20,000      $26,000         $40,000                   

Cash outflows:                     (<u>$28,000) </u>    (<u>$30,000)</u>       (<u>$22,000)</u>

Monthly cash flow:                ($8,000)       ($4,000)          $18,000          

Monthly interests:                           $0             ($76)          ($116.76)

Initial cash balance:                <u>$8,400 </u>       <u> $8,000 </u>         <u> $8,000</u>

Ending cash balance:                $400          $3,924       $25,883.24

Required bank loan:               $7,600          $4,076                   $0

Payment of bank loan:           <u>        $0  </u>        <u>       $0  </u>       <u>  ($11,676)</u>

Total                                         $8,000         $8,000       $14,207.24           

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

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3 years ago
the last recession changed the way many companies offer support to people and communties in need. many companies
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<span>The recession changed the way social assistance is provided by the means of reducing the specific financial capital allocated to these aspects, and instead encourage employees to take part in various social projects and programs that the company would be implementing.</span>
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3 years ago
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