COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 3, Problem 1.4SRE
To determine
The company R purchased equipment for $40,400 from office supplies which is to be paid within a month. Provide with correct entry.
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A manufacturing company receives an invoice on 29 February 20X2 for work done on one of its
machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency. The
accounts department do not notice and charge the whole amount to maintenance costs. Machinery is
depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of
acquisition and disposal. By what amount will the profit for the year to 30 June 20X2 be understated?
A local manufacturing company estimated the following expenses for the upcoming year:
a. Insurance on factory: $100,000
b. Factory security: 1 guard at $20/hour for a 2,000 hour work year
c. 1 production supervisor at $90,000/year
d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year
e. Depreciation: $25/machine hour
f. Utilities: $7/machine hour
The company applies overhead on the basis of machine hours.
Required:
· Build the cost formula
· Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units
o Calculate the expected number of machine hours to be used in the year.
o Calculate the estimated total manufacturing overhead cost.
o Calculate the applied overhead rate per machine hour.
o Calculate the applied overhead per unit of output.
Shane Engineering Ltd. Worked out an estimated expenditure of $
1,20,000 over a period of 8 years on repairs of machinery. The company
decided to raise a 'Provision for Repairs and Renewals Account by
debiting Profit & Loss Account with a uniform amount every year. The
actual expenditure on repairs during the first four years amounted to $
5,200, $ 12,900; $ 10,700 and $ 16,800.
Prepare Provision for Repairs and Renewal Account stating in the
footnote how the figures would appear in Balance Sheet and also for
treatment in computing of managerial remuneration.
Chapter 3 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 3 - Increases are recorded on which side of asset,...Ch. 3 - What is a footing?Ch. 3 - Prob. 1.3SRQCh. 3 - Prob. 1.4SRECh. 3 - Prob. 1.5SRECh. 3 - Prob. 1.6SRACh. 3 - Prob. 2.1SRQCh. 3 - Prob. 2.2SRQCh. 3 - What is a trial balance and what is its purpose?Ch. 3 - Prob. 2.4SRE
Ch. 3 - Prob. 2.5SRECh. 3 - Prob. 2.6SRACh. 3 - Prob. 1CSRCh. 3 - Prob. 2CSRCh. 3 - Prob. 3CSRCh. 3 - On which side of asset, liability, and owners...Ch. 3 - Prob. 5CSRCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Indicate whether each of the following types of...Ch. 3 - The terms debit and credit are often used in...Ch. 3 - Why is Prepaid Rent considered an asset account?Ch. 3 - Why is the modern system of accounting usually...Ch. 3 - Prob. 11DQCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Preparing a chart of accounts. The accounts that...Ch. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - The accountant for the firm owned by Randy Guttery...Ch. 3 - Prob. 1PBCh. 3 - Prob. 2PBCh. 3 - The following transactions took place at...Ch. 3 - Prob. 4PBCh. 3 - Prob. 5PBCh. 3 - Prob. 1CTPCh. 3 - Prob. 2CTPCh. 3 - In discussing a firms latest financial statements,...Ch. 3 - Prob. 2MFCh. 3 - Prob. 3MFCh. 3 - Prob. 4MFCh. 3 - Prob. 1EDCh. 3 - Prob. 1FSA
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