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3 years ago

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A company purchased new machinery and incurred freight, assembly, and installation costs in addition to the invoice cost of the

machinery. These additional costs should be debited to
A.installation expense.

B.machinery.

C.cash.

D.machinery expense.

1 answer:

enyata [817]3 years ago

3 0

D. machinery. its a original start up expense. should be calculated in cost

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Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310. If the ta

I am Lyosha [343]

Answer:

Operating cash flow= $16,792.5

Explanation:

Giving the following information:

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310.

<u>To calculate the operating cash flow, we need to use the following structure:</u>

Sales= 37,900

COGS= (15,000)

Gross profit= 22,900

Depreciation= (2,400)

Interest= (1,310)

EBT= 19,190

Tax= (19,190*0.25)= (4,797.5)

Depreciation= 2,400

Operating cash flow= 16,792.5

6 0

3 years ago

On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5

Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875. Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3. It is annually tested for impairment by comparing the fair value with the carrying value.

6 0

3 years ago

Multiple Production Department Factory Overhead Rates

Vinil7 [7]

Answer:

total overhead costs for blending department = $342,000

total machine hours blending department = 2,960

overhead rate per machine hour = $342,000 / 2,960 hours = $115.5405405 per machine hour

total overhead costs for packaging department = $324,000

total direct labor hours packaging department = 800

overhead rate per direct labor hour = $324,000 / 800 hours = $405 per machine hour

product blending department packaging department

Whole milk 1,210 x $115.54 = $139,804 260 x $405 = $105,300

Skim milk 980 x $115.54 = $113,230 280 x $405 = $113,400

Cream 770 x $115.54 = $88,966 260 x $405 = $105,300

total $342,000 $324,000

total overhead rate assigned to each product:

product blending dep. packaging dep. total

Whole milk $139,804 $105,300 $245,104

Skim milk $113,230 $113,400 $226,630

<u>Cream $88,966 $105,300 $194,266 </u>

total $342,000 $324,000 $666,000

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4 years ago

A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to

finlep [7]

Answer:

c. a decrease in the wage rate of accountants

Explanation:

As a result of the revision that makes personal tax returns much easier to complete, people would no longer need the services of accountants to calculate their tax returns. As a result, the demand for accountants would fall, all other things remaining equal.

The fall in demand would lead to a fall in wage rate of accountants

Please check the attached image for a graph explaining this concept

6 0

3 years ago

2. A closer estimate of the total cost can be made by including the estimated sales tax. Use a formula to calculate the estimate

Kazeer [188]

Answer: Hello your question has some missing details hence I will provide an answer based on the general scope of your question

answer ; =([Cost] * 1.07)

Explanation:

Assuming the table heading for estimated cost in July 2014 is named "Cost"

Total estimated cost

Total = Cost * ( 1 + Sales Tax )

= Cost * ( 1 + 0.07 )

= Cost * 1.07

Excel equivalent formula used that can be used = ([Cost] * 1.07)

5 0

3 years ago