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aivan3 [116]
2 years ago
11

On January 1, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years a

nd has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2021 and 2022, 25,000 and 84,000 units, respectively, were produced. Required: Compute depreciation for 2021 and 2022 and the book value of the drill press at December 31, 2021 and December 31, 2022, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.)
Business
1 answer:
timama [110]2 years ago
7 0

In 2021, the depreciation expense is $1500 and the book value is $34,500.

In 2022, the depreciation expense is $5040 and the book value is $30.960.

The units of production depreciation method depreciates an asset based on the output of the asset in a given period.

units of production = (output in a given year / total estimated output) x (cost of the asset  -salvage value)

Book value is the cost of the asset or the carrying value of the asset less the depreciation.

2021 depreciation = (25,000 / 500,000) x ($36,000 - $6000) = $1500

Book value = $36,000 - $1500 = $34,500

2022 depreciation = (84,000 / 500,000) x ($36,000 - $6000) = $5040.

Book value = $36,000 - $5040 = $30,960

To learn more about book value, please check: brainly.com/question/15871765

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A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate
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Answer:

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _variation__ than a firm pursuing a strategy based on low cost and high volume

Explanation:

The variation of the product means any change which changes the "physical attributes of an item" or the terms in which it is marketed "as altering the colour of a sugar pack. This is achieved by companies to increase their own market share.

8 0
3 years ago
When starting a small business, it's important to remember:?
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When starting a small business it is very important to remember to take into account your employees point-of- view
6 0
3 years ago
Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,0
seraphim [82]

Answer:

1. Company wide break-even point in dollar sales= $425,000

2. Break-even point in dollar sales for North region= $200,000

3. Break-even point in dollar sales for South region = $100,000

Explanation:

1. Computation of the companywide break-even point in dollar sales

First step is to find the Contribution margin ratio

Using this formula

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio:

Total company: ($240,000/$600,000)=0.4

North : ($120,000/$400,000)=0.4

South : ($120,000/$200,000)=0.6

Now let compute the Company wide break-even point in dollar sales using this formula

Company wide break-even point in dollar sales= Fixed costs / Contribution margin ratio

Let plug in the formula

Company wide break-even point in dollar sales= ($120,000 + $50,000) / 0.4

Company wide break-even point in dollar sales= $425,000

2. Computation for the break-even point in dollar sales for the North region using this formula

Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

Break-even point in dollar sales for North region= $60,000 / 0.3

Break-even point in dollar sales for North region= $200,000

3. . Computation for the break-even point in dollar sales for the South region.

Using this formula

Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

Break-even point in dollar sales for South region = $60,000 / 0.6

Break-even point in dollar sales for South region = $100,000

5 0
3 years ago
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent case
muminat

Answer: a.19.59% b.15.11%.

Explanation:

Average tax  rate is given as  the total tax paid divided by  total taxable income which is expressed as a percentage and must be less than the marginal tax rate.

Chandler is single and reports

taxable income of $132,200.

Tax liability: 25,903

Marginal rate: 24 %

Average rate: 17.94 x % = wrong

Average rate = total liable tax/ total income= 25, 903/ 132,200=0.195937 rounded to 0.1959

0.1959 x 100 = 19.59%.correct

b. Lazare, a head of household, records

taxable income of $80,600.

Tax liability: 12,176

Marginal rate: 22 %

Average rate: 12.30 X %= wrong

Average rate = total liable tax/ total income= 12,176/ 80,600= .0.15106= 0.1511

0.1511 x 100 = 15.11%.correct.

4 0
3 years ago
Pie Corporation paid $319,500 to acquire 90 percent ownership of Slice Company on April 1, 20X2. At that date, the fair value of
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Answer and Explanation:

As per situation the Journal entries with narrations is here below:-

As per requirement of a

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        To Cash $319,500

(Being cash paid is recorded)

2. Slice Co. investment Dr, $27,000  

      To  Income from Slice Co. $27,000

(Being investment is recorded)

3 Cash Dr, $13,500  

       To Slice Co. investment $13,500

(Being cash is recorded)

As per requirement b

1. Sales Dr, $90,000  

    To Total Expenses $80,000

     To Dividends Declared $5,000

      To Retained Earnings $5,000

(Being sales is recorded)

2. Common stock Dr, $160,000  

Additional paid-in capital Dr, $40,000  

Retained earnings Dr, $155,000  

Income from Slice Co. Dr, $27,000  

NCI in NI of Slice Co. Dr, $3,000  

       To Dividends declared $15,000  

            ($1,500 + $13,500)

        To Investment in Slice Co. $333,000  

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         To NCI in NA of Slice Co. $37,000

(Being acquisition is recorded)

5 0
3 years ago
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