Answered: the atkins museum recently hired a new…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PB: Pocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized...

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Chilton Peripherals manufactures printers, scanners, and other computer peripheral equipment. In the past, thecompany purchased equipment used in manufacturing from an outside vendor. In March 2018, Chilton decidedto design and build equipment to replace some obsolete equipment. A section of the manufacturing plant was setaside to develop and produce the equipment. Additional personnel were hired for the project. The equipment wascompleted and ready for use in September.Required:1. In general, what costs should be capitalized for a self-constructed asset?2. Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?3. Under what circumstance(s) would interest be included in the cost of the equipment?
The City placed a sculpture of a woman holding a child over her head in Hawrelak Park. During a winter festival, the parks crew decided to string multi-coloured lights around it. The artist is upset by this modification to her work. The artist may be able challenge this modification by asserting these rights: Select one: a. moral rights. O b. industrial design rights. O c. patent rights. d. domain rights.
Last year (2016), Bramble Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company’s accountant to provide him with cost data on the company’s elevator. This information is presented below. Old Elevator New Elevator Purchase price $103,500 $159,000 Estimated salvage value 0 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,000 $11,000 Fixed 23,900 8,200 Annual revenues are…
The following is a list of costs incurred by several manufacturing companies: a. Annual picnic for plant employees and their families b. Cost of fabric used by clothing manufacturer c. Cost of plastic for a toy manufacturer d. Cost of sewing machine needles used by a shirt manufacturer e. Cost of television commercials f. Depreciation of copying machines used by the Marketing Department g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules h. Depreciation of office building i. Depreciation of robotic equipment used to assemble a product j. Electricity used to operate factory machinery k. Factory janitorial supplies I. Fees charged by collection agency on past-due customer accounts m. Fees paid to lawn service for office grounds n. Maintenance costs for factory equipment o. Oil lubricants for factory plant and equipment p. Pens, paper, and other supplies used by the Accounting Department q. Repair costs for factory equipment r. Rent for a warehouse used to store work in process and finished products s. Salary of a physical therapist who treats plant employees t. Salary of the manager of a manufacturing plant u. Telephone charges by corporate office v. Travel costs of marketing executives to annual sales meeting w. Wages of a machine operator on the production line x. Wages of production quality control personnel Instructions Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer, placing an X in the appropriate column:
Arkitektyukid hired a consulting firm three (3) months ago to redesign the information system used bythe architects. The architects will be able to use state-of-the-art computer-aided design (CAD) programsto help in designing the products. Further, they will be able to store these designs on a network serverwhere they and other architects may be able to call them back up for future designs with similarcomponents. The consulting firm has been instructed to develop the system without disrupting thearchitects. Top management believes that the best route is to develop the system and then to “introduce”it to the architects during a training session. Management does not want the architects to spendprecious billable hours guessing about the new system or putting work off until the new system isworking. Thus, the consultants are operating in a back room under a shroud of secrecy. Required:a. Do you think that management is taking the best course of action for the announcement of the newsystem?…
Recognition of loss from spoilage. Spheres Toys manufactures globes at its San Fernando facility. The company provides you with the following information regarding operations for April 2017:
St. John's Hospital has decided to move to a new location to better serve the surrounding community. The project involves constructing a new hospital and making it operational. Judy Kramer, the project manager for the St. John's Hospital project, divided the project into two modules. She assigned John Stewart the overall responsibility for the Organizing and Site Preparation module and Sarah Walker the responsibility for the Physical Facilities and Infrastructure module. The project team developed the precedence relationships, activity time estimates, and the activity responsibilities shown in the following table: T 1 Activity ST. JOHN'S HOSPITAL PROJECT START ORGANIZING and SITE PREPARATION A. Select administrative staff B. Select site and survey C. Select medical equipment D. Prepare final construction plans E. Bring utilities to site F. Interview applicants for nursing and support staff PHYSICAL FACILITIES and INFRASTRUCTURE G. Purchase and deliver equipment H. Construct hospital I.…
Please help I am having trouble with this question. I will attach Images with better quality and some parts I have answered and parts I am missing. Thank you :) Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $39,000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27Highlands Mall Job 33Pine Ridge Estates Materials and equipment $ 15,825 $ 52,800 Direct labor 13,800 26,400 Overhead (applied) 5,520 10,560 Overhead has been applied at 40 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional…
When a company has post-acquisition expenditures related to Property, Plant, and Equipment it must determine whether the amount should be expensed as an ordinary repair or capitalized as a major repair, addition, or betterment. This requires considering the nature of the expenditure and the use of judgment. Many companies use a threshold amount. Any expenditure below the threshold is expensed. Items over the threshold are examined and a decision is made about whether to expense or capitalize the item. This approach is justified by both materiality and considering costs and benefits. For example, a company with $94 million in net property, plant, and equipment and $250 million of operating expenses would not consider a $100 repair as material. Plus, if the company had to spend thousands of dollars examining every repair expenditure, the costs of doing the analysis could easily outweigh the benefits. SouthEast Equipment has a large number of machines and equipment that are available for…
The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city posted notices seeking proposals for an artistic bridge design and reconstruction. Davidson Masonry, LLC, which was owned and managed by Carl Davidson and his wife, Marilyn Rowe, decided to submit a bid to create a decorative concrete structure that incorporated artistic metalwork. They contacted Shana Lafayette, a local sculptor who specialized in large-scale metal creations, to help them design the bridge. The city selected their bridge design and awarded them the contract for a commission of $184,000.Davidson Masonry and Lafayette then entered into an agreement to work together on the bridge project. Davidson Masonry agreed to install and pay for concrete and structural work, and Lafayette agreed to install the metalwork at her expense. They agreed that overall profits would be split, with 25 percent going to Lafayette and 75 percent going to Davidson Masonry.…
One of the major activities of the City Art Museum (CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and Its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial Information on the Individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series For the Year Ending June 30 Sales revenue Costs Advertising Lecturer fees and expenses Operating costs (staff) Space rental Food and…
One of the major activities of the City Art Museum ( CAM) is a Neighborhood Outreach Program, which was developed both as a public service and to market the museum and its other programs. One of the Outreach offerings, which is popular with both city and suburban residents, is the weekly Evening Lecture Series. The Series provides lectures on local art and history in various locations throughout the greater metropolitan area. A new museum director has been hired with the goal to make the museum more self-sustaining and less reliant on donations and government grants. One of the director's first actions was to ask the museum staff to put together detailed financial information on the individual activities. The result, shown in the accompanying table, indicates that the series operates at a loss. CITY ART MUSEUM Neighborhood Outreach: Evening Lecture Series For the Year Ending June 30 Sales revenue $ 388, 200 Costs Advertising $ 16,100 Lecturer fees and expenses 206, 000 Operating costs…

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the atkins museum recently hired a new controller.