On January 1, 2017, Zade Manufacturing Corporation purchased a machine for $41,000,000
Zade's management expects to use the machine for 33,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $44,000. The machine was used for 3,700 hours in 2017 and 5,900 hours in 2018. What is the depreciation expense for 2017 if the corporation uses the units-of-production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $4,592,033
B) $13,666,667
C) $7,322,431
D) $4,596,954
A .Depreciation per unit = (Cost - Residual value) / Useful life in units
Depreciation per unit = ($41,000,000 - $44,000 ) / $33,000 = $1,241.09
Depreciation for the year 2017 = $1,241.09 x 3,700 hours = $4,592,033
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Avery and Bert are partners who share profits in a ratio of 2:1 and have capital balances of $75,000 and $150,000, respectively. The partners agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35 percent interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is:
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The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods Units Beginning work in process 26,000 (70 percent complete for conversion costs) Units
started 180,000 Units transferred out 191,000 Ending work in process 15,000 (60 percent complete for conversion costs) Equivalent units for direct materials of Taylor Company are A) 180,000. B) 202,000. C) 176,000. D) 191,000.
When standard costs are used in process costing,
a. variances can be measured during the production period. b. total costs rather than current production and current costs are used. c. process costing calculations are made simpler. d. the weighted average method of calculating EUPs makes computing transferred-out costs easier.
On a given issue, the "muddled middle" is either positive, nonexistent, or negative
Indicate whether the statement is true or false