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Anit [1.1K]
3 years ago
11

Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its

product: Invoice price $34,000 Applicable sales tax 2,000 Cash discount taken for prompt payment 400 Freight paid 260 Cost of insurance coverage on machine while in transit 125 Installation costs 2,000 Testing and adjusting costs 475 Repair of damages to machine caused by the firm’s employees 750 Prepaid maintenance contract for first year of machine’s use 400 Determine the acquisition cost of the machine. Acquisition Cost
Business
1 answer:
klemol [59]3 years ago
6 0

Answer:

The acquisition cost is $38140

Explanation:

acquisiton cost = invoice price + applicable sales tax - cash discount + freight paid + cost of insurance + installation cost +testing and adjusting costt                

= $34000 + $2000 - $400 + $260 + $125 + $2000 + $425

= $38410

Therefore, The acquisition cost is $38140.

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Managing diversity isA. Recognizing the characteristics common to specific groups of employeesB. Dealing with employees as indiv
Dafna11 [192]

Answer:

The answer is (D) all of the above.

Explanation:

Managing diversity is a workplace practice where companies focus their efforts in establishing a working environment where people with various demographic characteristics can thrive and perform to their fullest potential according to their work responsibilities. This means employers, more specifically, the human resources department, need to pay attention to the individuals’ background in order to create a work environment that is fair to each individual.  

7 0
3 years ago
Pool line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we
attashe74 [19]

The answer is Pool Cleaning Systems. The relevant market product is Pool Cleaning System. It is engineered to clean the entire pool, including floors, steps, benches, even spas. Nozzles pop up consecutively to direct a power jet of water to direct debris towards the MDX-R3 drain.

8 0
3 years ago
Which of the following is an implicit cost in Jim's business venture?
lozanna [386]

Answer:

D) i and iii

Explanation:

Implicit cost refers to economic costs that are not directly attributed to the business but are nevertheless important in making informed decisions. In this case the opportunity costs are implicit cost. They are:

  • Salary forgone which should have been earned at another job, and
  • Interest lost from savings account.  
3 0
3 years ago
Flannery​ Company, a manufacturer of small​ appliances, had the following​ activities, allocated​ costs, and allocation​ bases:
VashaNatasha [74]

Answer:

Cost per letter for the correspondence​ activity= $ 8.75

Explanation:

Flannery​ Company

Given

                                 Activities Allocated      Costs Allocation Base

Account inquiry​ (hours)$ 77, 000                      2,600 hours

Account billing​ (lines) $ 38, 000                         19,000 lines

Account verification​ (accounts) $ 20,000         30,000 accounts

Correspondence​ (letters) $ 14,000                    1, 600 letters

Activities                          Northeast Office        Midwest Office

Account inquiry​ (hours)          100 hours            200 hours

Account billing​ (lines)             10,000 lines          9,000 lines

Account verification​ (accounts) 1 ,000 accounts 650 accounts

Correspondence​ (letters)           50 letters               110 letters

Calculations

Cost per letter for the correspondence​ activity= Total Correspondence/ Total No of letters

Cost per letter for the correspondence​ activity= 14000/1600= 8.75

Cost per letter for the correspondence​ activity= $ 8.75

We divide the activity cost with the corresponding cost driver to get the cost per unit of activity.

4 0
3 years ago
Kingbird, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable
antoniya [11.8K]

Answer:

(a) The adjusting journal entry to record bad debt expense for the year:

Debit Bad debt expense  $5,640

Credit Allowance for doubtful accounts  $5,640

<em>(To record bad debt expense)</em>

(b) If the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, The appropriate journal entries are:

Debit Bad debt expense $9,460

Credit Allowance for doubtful accounts  $9,460

<em>(To record bad debt expense)</em>

Explanation:

To arrive at the bad debt expense for Kingbird, Inc., we simply need to calculate 3% of accounts receivable, as follows:

2% of $429,500 = $8,590

Since the allowance for doubtful accounts has a credit balance of $2,950, the bad debt expense will be: $8,590 - $2,950 = $5,640. The appropriate journal entries are as provided above.

However, if the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, the bad debt expense will be: $8,590 + $870 = $9,460. The addition is necessary in order to reinstate the allowance account to $8,590. The appropriate journal entries are as provided above.

6 0
3 years ago
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