Answer:
V = $1,400,000 - $130,000t
Explanation:
Data provided in the question:
Cost of the new building = $1,400,000
Useful life = 10 years
Scrap value = $100,000
Now,
using the straight line method
Annual depreciation = [ Cost - Scrap value ] ÷ Useful life
= [$1,400,000 - $100,000 ] ÷ 10
= $130,000
Value of building = Cost of the building - Depreciation for 10 years
V = $1,400,000 - [ Annual depreciation × Time ]
V = $1,400,000 - $130,000t
Answer:
d) 216
Explanation:
We need to equate the value of 12th payment and t^th payment through the below formula.
=> 1000*(1+8%)^[(t-12)/12] =3700
=> (1.08)^[(t-12)/12] =3.7
=> [(t-12)/12] =17
=> t=216
Answer and Explanation:
The computation is shown below:
a. The manufacturing overhead is
= factory utilities + depreciation on factory equipment + indirect factory labor + indirect material + factory manager salary + property tax + factory repairs
= $16,500 + $12,650 + $48,900 + $70,800 + $8,000 + $2,500 + $2,000
= $161,350
b. The product cost is
= Direct material used + direct labor + total manufacturing overhead
= $157,600 + $79,100 + $161,350
= $398,050
c. The period cost is
= Depreciation on delivery truck + sales salaries + repairs to office equipment + advertising + office supplies used
= $3,800 + $48,400 + $1,300 + $23,000 + $4,640
= $81,140
