ACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)
One of the items was sold during the year. Required: Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory, assuming use of: a. LIFO b. FIFO c. Weighted average (total cost/total number) | |Cost of goods sold |Ending inventory | |LIFO |700 |800 | |FIFO |800 |700 | |Weighted Average |750 |750 | Problem 2. Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life.
| 1,000,000 | 0.25 | 250,000 | | Depreciation Expense - New Equip. | 250,000 | 0.18 | 45,000 | | Total | 1,250,000 | | 295,000 | | | | | | | 1.3-. Building | | | PLN | USD/PLN | U.S. $ | | Old Building - at January 1, Year 1 | 30,000,000 | 0.25 | 7,500,000 | | New Building-acquired March 5, Year 2 | 6,000,000 | 0.17 | 1,020,000 | | Total | 36,000,000 | | 8,520,000 | | | | | |
Exercise 3-13. Costing Units Completed and Ending Work in Process: [LO 2,3,4] At the start of November, Penco Refinery had Work in Process inventory consisting of 4,000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs. The cost of the units was $43,000 ($30,000 of material cost and $13,000 of labor and overhead). During November, the company started 44,000 units and incurred $421,990 of material cost and $394,880 of labor and overhead. The company completed 45,000 units during the month, and 3,000 units were in process at the end of November.
2. RST Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory on July 01
Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings. Qo= √2RS/H= √(2(20000)(2093.75)/200) = 647 Economic Batch size= 647 Annnual setup cost= (R/Q)(S)= (20000/647) X 2093.75= $64,722 Annual Holding Cost= (Q/2)H= (647/2)X $200= 64,700 Total Annual Cost= Annual setup cost+ Annual Holding Cost Total Annual Cost= $64,722+ $64,700 = $129,422 Cost savings= $186,172- $129,422= $56,750 Cost savings= $56,750 Question 3 (a) Compute Victor’s total annual cost of ordering and carrying inventory. Assumption= 52 weeks/year R = 30 dresses per week = 30 X 52 weeks per year = $1560 Sales price = $300/dress C = 150 per dress Order Lead Time = 2 weeks Fixed Order Cost = S = $225 Cost of Capital = r = 20% Annual Holding cost = H = rC = 150 X 20% = $30 per dress Q = 10 week supply X $30 Annual
It took the workers 6 weeks. We only have two weeks. This work will be done by having 12 hour shifts 7 days a week for two weeks. We will move
What was its return on total assets? | | | Student Answer: | | 7.22% | | | | 7.58% | | | | 7.96% | | | | 8.36% | | | | 8.78% | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 2. | Question : | Nikko Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE? | | | Student Answer: | | 16.87% | | | | 17.75% | | | | 18.69% | | | | 19.67% | | | | 20.66% | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 3.
In one week, the team can make 500 shirts. The shirts sell for $40 each in the United States. a. What are the labor costs for each shirt? (4 points) b.
(Points : 3) Upgrade the equipment Assign a roaming helper to support the line Split the task between two workstations Speed up the assembly line transfer mechanism Use a more skilled worker Question 4.4. (TCO 7) Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to breakeven? (Points : 3) 5,000 units 6,000 units 8,000 units 11,000 units 12,000 units Question 5.5.