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Natali5045456 [20]
3 years ago
6

Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful

life is estimated at 10 years, or 300,000 units of product, with a $6,000 salvage value. During its first year, the machine produces 14,000 units of product. Determine the machine's first year depreciation expense under the units-of-production method.
Business
1 answer:
Nastasia [14]3 years ago
3 0

Answer:

Annual depreciation (year 1)= $1,400

Explanation:

Giving the following information:

Buying price= $36,000.

Useful units= 300,000 units of product.

Salvage value= $6,000

During its first year, the machine produces 14,000 units of product.

To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(36,000 - 6,000)/300,000]*14,000

Annual depreciation= 0.1*14,000= $1,400

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Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can
ale4655 [162]

Answer:

transfer price 3.31

Explanation:

the minimun transfer price should be equal to the marginal cost:

In this case: variable manufacturing cost + shipping cost.

variable cost 3.1

shipping cos 0.21

marginal price 3.31 = cost of produce an additional unit = transfer price

there is no additional fixed cost so this should be the transfer price.

5 0
2 years ago
You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
LuckyWell [14K]

Credit card bill from ABC credit have listed a number of expenses made, these needs to be posted according to the relevant accounting heads.

<h3 /><h3>What is Accounting?</h3>

Accounting is the calculation of cash, in other terms it is the study of debit and credit. The accounting teaches the treatment of different transactions, the transactions are divided in different heads, asset, expense, income, liability and capital.

T Accounts should be made as follows.

Assets

DR $1500 Computers

DR $650 Furniture

DR $334 Van Payment

Expenses

DR $420 Office Supplies

DR $250 Electric Company

DR $100 Water

DR $250 Office Supplies

Petty Expenses

DR $150 Steak House

DR $100 Fuel Stop

The expenses are distributed among the heads that they are relevant to, petty expenses only contains the payment for expenses that are immaterial in nature and amount, Asset account have the payments made for assets.

Learn more about Credit card at brainly.com/question/27123519

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6 0
1 year ago
Which ratio measures how efficiently a firm uses its fixed assets?
dmitriy555 [2]

Answer:

Total Assets Turnover Ratio

3 0
3 years ago
uppose a Starbucks tall latte cost $4.00 in the United States, 5.00 euros in the euro area and $2.50 Australian dollars in Austr
max2010maxim [7]

Answer: Nether Australia or Europe

Explanation:

Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.

If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.

$4.00 in Euro is:                                                  $4.00 in Australian dollars is:

= 4 * 0.8                                                                 = 4 * 1.4

= €3.20                                                                 = $5.60

Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.

4 0
3 years ago
Manuel is walking past Thomas's house when he hears a smoke alarm going off. He also hears a child calling for help and sees smo
Fed [463]

Answer: Assisting someone in danger.

Explanation:

Manuel's defense if Thomas Sue him for trespass would be that that he help saved the child from danger. Manuel although he trespassed Thomas property, did so to save the helpless child inside the house, that could have lost his life.

8 0
2 years ago
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