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solong [7]
3 years ago
11

On February 1, 2020, Hawser Corporation purchased a parcel of land as a factory site for $960,000. An old building on the proper

ty was demolished, and construction began on a new building which was completed on November 1, 2020.
Costs incurred during this period are listed below:
Demolition of old building $ 60,000
Architects Fees 105,000
Legal fees for title investigation and purchase contract 15,000
Construction costs 4,170,000
Salvaged materials resulting from demolition were sold for $30,000.

Hawser should record the cost of the land and new building, respectively, as _________.
Business
1 answer:
Zolol [24]3 years ago
5 0

Answer:

Cost of land = $1,005,000

Cost of building = $4,275,000

Explanation:

The calculation of cost of the land and new building is shown below:-

Cost of land = Purchase cost + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials

= $960,000 + $ 60,000 + 15,000 - $30,000

= $1,005,000

Cost of building = Architects Fees + Construction costs

= $105,000 + $4,170,000

= $4,275,000

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Answer:

Supplier's quotation (2,400 x $6.25)                     150,000

Less: Relevant cost of production:

Direct material (2,400 x $31)                 74,400

Direct labour (2,400 x $18)                    43,200

Variable overhead (2,400 x $9)             <u>21,600</u>       <u>139,200</u>

Savings                                                                       <u> 10,800</u>

The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.

 Explanation:

In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.

8 0
3 years ago
In a process costing system, the number of units started and completed for a period is equal to: Multiple Choice Units transferr
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Answer:

Units transferred out less units in beginning work in process.

Explanation:

A process costing system is generally used when similar or identical products are mass produced.

To determine the total number of units transferred out = beginning work in process + units started and transferred out - ending work in process

To determine the amount of units started and completed = total units transferred out - beginning work in process

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3 years ago
Fess Hardware Store had net credit sales of $8,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivabl
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Answer: 12.5 times

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The accounts receivable turnover tells you how effective your company's collection mechanism is.

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Answer:

Explanation:

B

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Ralph gives his daughter, angela, stock (basis of $8,000; fair market value of $6,000). no gift tax results. if angela subsequen
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Answer:

D) $2,000

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3 years ago
Read 2 more answers
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