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Question
On January 1, a company purchased machinery for $75,000 that had a 6-year useful life and a salvage value of $6,000. After three years of straight-line depreciation, the company paid $8,500 cash at the beginning of the year to improve the efficiency of the machinery. The productivity of the machinery was improved without increasing its remaining useful life or changing its salvage value. Straight-line depreciation is used throughout the machinery's life.1) Prepare the journal entry to record the $8,500 expenditure.
2) Prepare the journal entry to record depreciation expense for the fourth year.
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
B. $13.30 per unit
C. $11.00 per unit
D. $11.60 per unit
E. $16.50 per unit
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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D. $288,000
E. $220,000
Q:
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Direct labor $2.50 per unit
Variable overhead $3.50 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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B. $18,620
C. $24,500
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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
C. $1,627,150
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E. $1,708,600
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Given the Scavenger Company data, what is net income using variable costing?
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B. $181,250
C. $150,000
D. $177,600
E. $276,250
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Given the Galaxy, Inc. data, what is net income using absorption costing?
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B. $17,400,000
C. $16,360,000
D. $16,800,000
E. $16,220,000