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Question
On April 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 12,000 units were produced.Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses:
a. The straight-line method of depreciation
b. The units-of-production method of depreciation
c. The double-declining balance method of depreciation
Answer
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Q:
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Direct labor X X
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Variable manufacturing overhead
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Direct materials
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Match the following
Q:
Given the following data, calculate product cost per unit under variable costing.
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Direct materials $3 per unit
Overhead
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Total fixed overhead $85,000
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A. $7 per unit
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Q:
Tim's Tools, a manufacturer of cordless drills, began operations this year. During this year, the company produced 20,000 units and sold 18,000 units. At year-end the company reported the following income statement using absorption costing:
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Gross margin $288,000
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E. $220,000
Q:
Decko Industries reported the following monthly data:
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Direct labor $2.50 per unit
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Q:
What is the Red and White's contribution margin for this month if 980 units were sold?
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E. $21,560
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Given the Cool Pools Company data, what is net income using absorption costing?
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B. $1,648,600
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Q:
Given the Scavenger Company data, what is net income using variable costing?
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E. $276,250
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Given the Galaxy, Inc. data, what is net income using absorption costing?
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D. $16,800,000
E. $16,220,000