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- 7. Depreciation is necessary to calculate: * O Net financial position O None of the above О Тах O Net profit13. Depreciation decreases: * O Capital O Cash O Bank O LiabilitiesPOLO Company recorded a loss of $9,000 when it sold a van that originally cost $84,000 for $15,000. Accumulated depreciation on the van must have been Select one: O a. $60,000. O b. $75,000. C. $78,000. d. $24,000.
- Devlin is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 Devlin opened a landscaping business. Question Facts At the end of the first year of operation, he submitted the information on the right to his accountant. 1. Devlin stopped renting out his cottage for $4,000 a year and used it as his business premises. The accountant recorded the depreciation on Devlin's cottage during 2020 as $2,000. 2. The market value of the cottage increased from $70,000 to S71,000. 3. He spent $10,000 on materials, phone, utilities, etc. According to the accountant, what profit did Devlin make? 4. He leased machines for $14,000 a year. 5. He paid $5,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. According to the accountant, Devlin's profit is O A. $165,800 O B. $104,550 OC. $30,000 7. He borrowed $40,000 at 8 percent a year from the bank. 8. He sold $200,000 worth of landscaping. 9. Normal profit is $30,000 a year. O D. $28,000Compute the depreciation of the machine. A television company purchased machinery for BD 10,000 in 2009. It is estimated to have a useful life of 10 years with a scrap value of BD4000, production unit of 40,000 and working hours of 12,000. The company also used this machinery to produce 4,400 units in 2010. a. BD500.00 b. BD550.00 c. BD660.00Wood for frames $ 14,500 Rent for retail store 3,900 Depreciation on office equipment 580 Assembly worker wages 2,450 CEO's salary 3,950 Glue and nails 650 Online sales commissions 1,900 Glass for frames 5,800 Depreciation on factory equipment 1,050 Factory utilities Stain for frames 600 650 Required: 1. Determine the cost of direct material. 2. Determine the cost of direct labor. 3. Determine the cost of manufacturing overhead. 4. Determine the total manufacturing cost. 5. Determine the total period cost. 6. Determine the total variable cost. 7. Determine the total fixed cost. 8. Determine the total prime cost. 9. Determine the total conversion cost.
- 4 03:16:23 Mc Graw Hill Determine if each item below is a traceable or a common fixed cost. Depreciation on equipment used only by one segment Multiple Choice Traceable fixed cost Common fixed costStore Local Department Store Across Town Neighboring City Travel Time Each Way (Minutes) 15 30 60 Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Store Local Department Store Across Town Price of a Skirt (Dollars per skirt) 103 87 64 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Neighboring City Price of a Skirt (Dollars per skirt) 103 87 64 Total Cost (Dollars) Assume that Juanita takes opportunity costs and the price of the skirt into consideration when she shops. Juanita will minimize the cost of the skirt if she buys it from the…2. In 2015 your friend bought a Pear ePhone-X smart phone for $781. Now, in 2021, Sell-My-Stuff says that it is worth $405. (a) Assuming linear depreciation, find a function V(x) for the value of the phone, x years after 2015. (b) How much will the phone be worth in 2022? (c) In what year will the phone be worth $0? Please round to the nearest year.
- Calculate the net value added at factor cost if :- Value of output = $800 Purchase of raw material = 400 Depreciation = $25 Excise duty =$30 Import duty = $50Value added by a single firm is measured as total sales revenue O a. Plus indirect business taxes O b. minus the purchase of intermediate goods OC. Minus factor payments (labour and capital) O d. Plus depreciationJane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a minibus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, and depreciation. She estimates that her entrepreneurial skills would have typically yielded a normal profit of $5,000 in another business. (a) Complete the following questions: (1) What are Jane’s total revenues? (2) What are Jane’s explicit costs? (3) What is her accounting profit? (b) List the important implicit costs that Jane has not included. (c) What is Jane’s pure economic profit (loss)?
