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Karolina [17]
3 years ago
6

Williams Company purchased a machine costing $25,000 and is depreciating over a 10-year estimated useful life with a residual va

lue of $3,000. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,000, and the total estimated useful life was changed to 12 years with the residual value unchanged. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method
Business
1 answer:
xxTIMURxx [149]3 years ago
8 0

Answer:

$3,100

Explanation:

We need to determine the carrying value of the machine after 8 years as a starting point in this analysis.

annual depreciation expense=cost-residual value/useful life

cost= $25,000

residual value=$3,000

useful life=10 years

annual depreciation expense=($25000-$3000)/10

annual depreciation expense=$2,200

accumulated depreciation for 8 years=$2,200*8=$17,600

carrying value after 8 years=cost-accumulated depreciation for 8 years

carrying value after 8 years=$25,000-$17,600=$7,400

The cost of the major overhaul would increase the carrying value with both amounts depreciation over the remaining 4 years since the useful life has been increased from 10 to 12 years

year 8 depreciation=(carrying value afte

year 8 depreciation=($7,400+$8,000-$r 8 years+cost of the overhaul-residual value)/remaining useful life 3,000)/4

year 8 depreciation=$3,100

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In the context of web marketing the _____ is computed by dividing the number of clicks on an ad
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Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec
liberstina [14]

Answer:

(A)

The total relevant cost would be: 495,000

Buy 15,000 x 35 = 525,000

It would be better to keep producing.

(B) relevant cost 495,000

Buy 525,000 - 150,000 = 375,000

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Explanation:

The relevant cost would be:

Direct Materials                         14

Direct labor                                10

Variable Overhead                     3

traceable fixed overhead          6

Total                                         33

15,000 x 33 = 495,000

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7 0
3 years ago
Crinks Corporationu ses direct labor hours in its predetermined in its predetermined overhead rate. At the beginning of the year
balu736 [363]

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Explanation:

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= Estimated total manufacturing overhead / Estimated amount of the allocation base

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6 0
2 years ago
Beck Manufacturing reports the information below for 2017. Raw Materials Inventory Begin. Inv.12,900 Purchases48,000 Avail. for
ollegr [7]

Answer:

Beck Manufacturing

1. Schedule of Cost of Goods Manufactured for the Year:

Inventory of Work in Process       $17,400

Direct materials used                    48,500

Direct labor                                    30,700

Overhead                                      63,000

Cost of production                   $159,600

Less Ending Inventory of WIP      14,400

Cost of Manufactured Goods $145,200

2. Cost of goods sold for the year

Beginning inventory of finished goods   $16,600

Cost of manufactured goods                  145,200

Cost of goods available for sale            $161,800

Less Ending inventory of finished goods 18,600

Cost of Goods Sold                               $143,200

Explanation:

a) Data and Calculations:

Raw Materials Inventory Begin. Inv. 12,900

Purchases                                         48,000

Avail. for use                                    60,900

DM used                                          48,500

End. Inv.                                            12,400

Work in Process Inventory

Begin. Inv.                                        17,400

DM used                                         48,500

Direct labor                                    30,700

Overhead                                      63,000

Avail. for mfg.                              159,600

Cost of goods mfg                     145,200

End. Inv.                                        14,400

Finished Goods Inventory

Begin. Inv.                                   16,600

Cost of goods mfg                   145,200

Avail. for sale                            161,800

Cost of Goods Sold                 143,200

End. Inv.                                     18,600

7 0
3 years ago
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