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3 years ago

Jackson Ltd is developing computer software for use in its courier delivery service business. So

Business

1 answer:

Helen [10]3 years ago

5 0

Answer:

Jackson Ltd

Software Development ($50,000) and Purchase ($100,000):

The accounting treatment consistent with the framework is to:

a. Recognise an asset of $100 000 and expense of $50 000.

Explanation:

The development cost of the Software which is abandoned cannot be capitalized. Software development cost can only be capitalized after testing for usability. Otherwise, Software development costs are expensed as they are incurred. On the other hand, the purchased Software can be recognized as a long-term asset, Plant, Property, and Equipment as it will be in use for more than 2 years.

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2 years ago

Dave's firm had grown steadily and the products and systems had become more and more complicated. He had been a star representat

Katen [24]

Answer:

Sales team

Explanation:

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3 years ago

Heather Company is considering the acquisition of a machine that costs $360,000. The machine is expected to have a useful life o

Angelina_Jolie [31]

Answer:

3 years

Explanation:

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6 0

3 years ago

Before liquidating any assets, the partners determined the amount of safe cash and distributed it. The noncash assets were then

Alex787 [66]

Answer: $98,000

Explanation:

3 0

3 years ago

The following direct materials data pertain to the operations of Wright Co. for the month of December. Standard materials price

aksik [14]

Answer:

There are various material variances, but main are Material Price Variance and Direct Material Quantity Variance and with the combination of these 2 variances we have Material Usage Variance

Material Price Variance = (Standard Price - Actual Price) X Actual Quantity

Given standard Price = $5 per unit

Actual Price = $5 - 4% = $4.8

Material Price Variance = ($5 - $4.8) X 16,500 = $3,300 Favorable

Material Quantity Variance = (Standard Quantity - Actual Quantity) X Standard Price

Standard Quantity = 4,000 units X 4 pounds per unit = 16,000 pounds

Material Quantity Variance = (16,000 - 16,500) X $5 = - $2,500 Unfavorable

Material Usage Variance = Standard Price X Standard Quantity - Actual Price X Actual Quantity

= ($5 X 16,000) - ($4.8 X 16,500)

= $80,000 - $79,200 = $800 Favorable = Material Price Variance + Material Quantity Variance = $3,300 + (-$2,500) = $800 Favorable

Material Price Variance = $3,300 Favorable

Material Quantity Variance = - $2,500 Unfavorable

Material Usage Variance = $800 Favorable

7 0

3 years ago