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3 years ago

Leelanau applies overhead using a predetermined rate. What amount of overhead was applied to work in process last year

Business

1 answer:

GuDViN [60]3 years ago

4 0

Answer:

$138,500

Explanation:

The computation of the overhead applied is shown below:

As we know that

Cost of goods manufactured = Beginning WIP + Total manufacturing costs - Ending WIP

$323,000 = $10,500 + Total manufacturing costs - $19,000

So,

Total manufacturing costs is

= ($323,000 + $19,000 - $10,500)

= $331,500

Now

Total manufacturing costs is

= Direct materials + Direct labor + Overheads

So,

Overheads is

= ($331,500 - $115,000 - $78,000)

= $138,500

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Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner

kirill [66]

a. The hot assets per Section 741(a) for this sale are as follows:

i. Accounts receivable

ii. Inventory

iv. Potential depreciation recapture in the equipment

b. Marco's gain or loss on the sale of his partnership interest is $33,000.

c. The character of Marco's gain or loss is <u>iv. $33,000 capital gain</u>.

<h3>What is a partnership interest?</h3>

A partnership interest refers to a partner's ownership and benefits that accrue from the partnership.

The partnership interest entitles the partner to participate in the distribution of profits and losses arising from the partnership business.

<h3>Data and Calculations:</h3>

Each partner's outside basis = $104,000

Sale proceeds of Marco's partnership interest = $137,000

Gain = $33,000 ($137,000 - $104,000)

Thus, Marco, who sold his partnership interest to Ryan, had a capital gain of $33,00 because of the difference between the sale proceeds and the partner's adjusted basis in the partnership interest.

Learn more about partnership interests at brainly.com/question/14835194

4 0

2 years ago

Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:

Vlada [557]

Answer: 75,000 units

Explanation:

Come up with an expression to solve this.

Assume the budgeted production needed is P.

P needs 2 pounds of raw materials per unit so raw materials needed are 2P.

Beginning raw materials for February have to be 30% of the needs of February;

= 30% * 2P

= 0.6P

Ending raw materials for February have to be 30% of March needs so;

= 30% * 100,000 * 2 pounds

= ‭60,000‬ pounds

So;

Budgeted raw materials purchase for February = Raw materials needed + Ending raw materials - Beginning raw materials

165,000 = 2P + 60,000 - 0.6P

1.4P = 165,000 - 60,000

P = (165,000 - 60,000) / 1.4

= 75,000 units

5 0

3 years ago

Transactions/events: 1. Acquired $25,000 from the issue of common stock. 2. Purchased $2,500 of supplies on account from the Gad

shepuryov [24]

Answer:

I guess that you need the journal entries:

1. Acquired $25,000 from the issue of common stock.

Dr Cash 25,000

Cr Common stock 25,000

2. Purchased $2,500 of supplies on account from the Gadget Supply Agency.

Dr Supplies 2,500

Cr Accounts payable 2,500

3. Performed security services at local sporting events during the year for $8,000 cash.

Dr Cash 8,000

Cr Service revenue 8,000

4. Paid salaries expense of $3,000 for the year.

Dr Salaries expense 3,000

Cr Cash 3,000

5. Purchased land, paying $10,000 cash.

Dr Land 10,000

Cr Cash 10,000

6. Paid utility expenses of $2,000 for the year.

Dr Utilities expense 2,000

Cr Cash 2,000

7. Paid a cash dividend of $1,500 to the shareholders.

Dr Dividends 1,500

Cr Cash 1,500

8. Found out from an appraiser that the market value of the land on 12/31 was $12,500.

NO JOURNAL ENTRY

7 0

3 years ago

AIE Industries plans to purchase a new delivery truck for $250,000. The company has been quoted an annual rate of 6.5 percent wi

Svetllana [295]

Answer:

a. AIE will have to borrow $25,5102.04

b. The Effective Rate on this Loan is 6.63%

c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%

Explanation:

In order to calculate how much will AIE have to borrow we would have to use the following formula:

Amount to be borrowed = Cost of Truck / (1 - Compensating balance)

Amount to be borrowed = $250000 / (1 - 0.02)

a. Amount to be borrowed = $25,5102.04

In order to calculate the effective rate on this loan we calculate the following:

Effective Rate on this Loan = Interest / Amount received

Effective Rate on this Loan = 16581.63 / 250000

b. Effective Rate on this Loan = 6.63%

c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%

5 0

3 years ago

Monte’s Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment was expected to have a usefu

Igoryamba

Answer:

1.a

2014 Depreciation

Straight line method $28,000

Units-of-output $37,380

Double declining balance $60,000

2015 Depreciation

Straight line method $28,000

Units-of-output $29,820

Double declining balance $20,000

2016 Depreciation

Straight line method $28,000

Units-of-output $16,800

Double declining balance $6,667

1.B Total Depreciation in 3 years

Straight line method $84,000

Units-of-output $84,000

Double declining balance $86,667

2. Double declining balance yields the highest depreciation expense for 2014

3. Double declining balance yields the highest depreciation expense over the three-year life of an equipment

Explanation:

1.A In computing straight line method, the formula would be:

(cost of equipment - salvage value) / life of equipment

2014

(90,000 - 6,000) / 3 years = 28,000

2015

(90,000 - 6,000) / 3 years = 28,000

2016

(90,000 - 6,000) / 3 years = 28,000

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $84,000 ($28,000 + $28,000 + $28,000)

UNITS-OF-OUTPUT METHOD

Formula: (Cost of equipment - salvage value) / total operating hours of equipment x operating hours used for the year

2014

($90,000 - 6,000) / 20,000 x 8,900

($84,000 / 20,000) x 8,900

$4.2 per hour x 8,900 = $37,380

2015

($90,000 - 6,000) / 20,000 x 7,100

($84,000 / 20,000) x 7,100

$4.2 per hour x 7,100 = $29,820

2016

($90,000 - 6,000) / 20,000 x 4,000

($84,000 / 20,000) x 4,000

$4.2 per hour x 4,000 = $16,800

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $84,000 ($37,380 + $29,820 + $16,800)

DOUBLE DECLINING BALANCE

Formula: 100%/life of equipment x 2

*residual value will not be considered in this method of computation of depreciation expense.

2014

100% / 3 years x 2 = 66,67%

90,000 x 66.67% = $60,000

2015

100% / 3 years x 2 = 66,67%

$90,000 - $60,000 = $30,000

$30,000 x 66.67% = $20,000

2016

100% / 3 years x 2 = 66,67%

$90,000 - ($60,000 + $20,000) = $10,000

$10,000 x 66.67% = $6,667

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $86,667 ($60,000 + $20,000 + $6,667)

2. Double declining method yields the highest depreciation expense in 2014 in the amount of $60,000 as computed above.

3. The method that yields most depreciation over the three-year life of an equipment is the DOUBLE DECLINING METHOD in a total amount of $86,667.

8 0

3 years ago