cost of equipment?
Q: How much is the cost of th
A: To calculate the cost of acquisition or self construction, IAS 16 should be referred.
Q: What is physical asset market?
A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…
Q: What are the factors affecting equipment costs?
A: Equipment cost is the total cost incurred to bring the equipment in the useable state. It includes…
Q: Evaluate labour cost as a major project cost.
A: Project Cost: It is an estimation of total funds required to complete a project. The estimation is…
Q: What does the concept of cost of equipment includes? Describe in detail.
A: Property, plant, and equipment: These assets are long-lived economic resources which are owned by…
Q: Explain the following terms: practical capacity, cost of resources supplied, cost of resources used,…
A: Resource: It refers to a supply that can be used for producing the benefits or by making use of…
Q: What are the Nonmanufacturing costs?
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Cost
A: cost volume variance measures the difference between the cost of actual units produced and budgeted…
Q: What does the equipment replacement investment decision involve?
A: Equipment replacement investment decision is an important form of capital budgeting decisions. In…
Q: Difference between standard cost and actual cost.
A: A standard cost is a pre-determined or pre-established cost to make a unit of finished product.…
Q: Define value engineering. How is it used to control costs?
A: Value engineering also called value analysis refers to the process of increasing quality of the…
Q: Cost price of existing machine
A: Cost of existing machine = (Depreciation per annum (SLM) * Useful life of machine) + Salvage Value
Q: Explain the term internal failure costs.
A: Internal failure costs: Internal failure costs include additional production-related costs that are…
Q: management consider in determining the amount of onvestment in ma
A:
Q: What is a prior service cost?
A: Prior service cost is one of the component of pension expense. It means present value of benefits or…
Q: Calculate how much material A
A: Worth of a product will be decided by the current price to the company i.e it will consider the net…
Q: Calculate the units produced?
A:
Q: Which of the following would be an acceptable measure of activity for a material handling activity…
A: For a material handling activity cost pool, number of material moves and weight of materials moved…
Q: isition cost poration cost lopment cost uction equipment
A: The depletion cost is used in mining and timber and oil industries and it is charge against profit…
Q: What means of cost
A: Cost denotes the amount of money that a company spends on the creation or production of goods or…
Q: What is the equipment replacement?
A: Under replacement, one is focused with equipment and machinery that worsens with the passage of…
Q: How does an engineered cost differ from a discretionary cost?
A:
Q: aterials purchase from the previc d cost of direct materials.
A: The correct answer is b) Budgeted cost of direct materials .
Q: Determine the cost of the machine.
A: It is pertinent to note that as per IAS 16 all the costs that are incurred for an asset in order to…
Q: What was the acquisition cost of the equipment?
A: Given the salvage value = 15000 Useful life = 10 years Depreciation for 4th year = 63636 If the…
Q: What the strategy of types of internal failuer cost?
A: Internal failure costs are those costs that are caused by products or services not conforming to…
Q: Cost per unit for material?
A: Weighted average method is one of the method of process costing. Under this method, equivalent units…
Q: What is the cost
A: Cost price is the price incurred by the manufacturer in producing goods and services. It is the…
Q: What does period cost include
A: Period costs are the expenses which are typically related to passage of time and not to any…
Q: Total units of direct material ?
A: Cost accounting is one of the branches of accounting. Process costing is one of the processes of…
Q: What is cost management?
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: What is the formula used to determine the amount of direct materials to be purchased?
A: Direct materials: Direct materials are the materials and supplied that are directly consumed for…
Q: What the mean of standar cost
A: Standard cost is defined in the CIMA ‘ the planned unit cost of the product, component or service…
Q: What is costing system refinement?
A: Broad averaging is also known as peanut butter cost is a costing approach of distributing the…
Q: What is operation costing?
A:
Q: What are the Project Cost Elements?
A: The deliverables such as products or services that a project is intended to create defines the work…
Q: Understand property, plant, and equipment and its related costs.
A: Business have several assets such as cash, inventories, accounts receivables, investments, PPEs…
Q: Which costs might be included in the initial cost of equipment?
A: Property, plant and equipment: Property, plant and equipment are the tangible assets which are…
Q: What is the process of transaction costs?
A: Transaction cost: Transaction cost refers to a cost that is incurred in the process of carrying out…
Q: What is the total cost of ownership concept? What are some of the challenges that must be overcome…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Define the term external failure costs.
A: Quality costs: Quality costs are costs that are incurred to avoid, identify and eliminate defects…
Q: What is the standard cost system?
A:
Q: Define cost of construction.
A: Determination of cost: The procurement or acquisition cost of “property, plant and equipment”…
Q: What is asset specificity?
A: It is a term which is specially used to depict the inter party relationships amongst transactions
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- Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at…
- 2. On January 1, 2020, an entity entered into a long-term construction contract with fixed contract price of P5,000,000. The entity billed its client as follows: 30% during 2020, 40% during 2021 and the remainder at the year of project completion. The following data were provided by the cost accountant of the entity: 2020 2021 2022 Cumulative Cost incurred as of the end of the year P2,200,000 P3,600,000 P4,800,000 Estimated remaining cost to complete at the end of the P3,300,000 P900,000 year 1. What is the excess of construction in progress over progress billings on December 31, 2020 under percentage of completion method, cost-to-cost approach? a. 500,000 b. 200,000 c. 300,000 d. 400,000 2. What is the excess of construction in progress over progress billings on December 31, 2021 under cost recovery method? a. 100,000 b. 500,000 c. 300,000 d. 400,000 3. Assume that an architect hired by the company made the following estimates of the project's percentage of completion at 50%, 90% and…Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Complete this question by entering your answers in the tabs below. Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show…WITH SOLUTION/COMPUTATION 62. On January 1, 2019, an entity purchased a new machine for P6,000,000 for the purpose of leasing it. The machine had an estimated 10-year life. On April 1,2019, the entity leased the machine to a lessee for three years at a monthly rental of P400,000. The lessee paid the rental for one year of P4,800,000 on April 1, 2019 and additionally paid P900,000 to the lessor as a lease bonus to obtain the three-year lease. On April 1, 2019, the entity paid P300,000 to a broker as a finder fee. What is the net rental income for 2019?a. 3,150,000b. 4,350,000c. 3,200,000d. 4,400,000
- JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,365,000. JRE2 recognizes revenue upon contract completion. Estimated Cost to Complete. $ 1,660,000 621,000 0 Cost incurred. 2023 2024 2025 $ 272,000 1,710,000 560,000 In 2025, JRE2 would report gross profit (loss) of: . Multiple Choice $(177,000) $84,000, $61,000 $20.222Assume Avaya contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year. Cash collections during the year 2024 2025 $ 328,000 $ 1,830,000 1,312,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information…WITH COMPUTATION-SOLUTION 65. On December 31, 2019, an entity sold an equipment with an estimated remaining useful life of 10 years. At the same time, the entity leased back the equipment for 2 years. Sale price at above fair value 7,500,000 Fair value of equipment on date of sale 6,000,000 Carrying amount of equipment 5,000,000 What amount of gain should be reported in the income statement for 2019?a. 2,500,000b. 1,500,000c. 1,000,000d. 1,750,000
- On January 31, 2020, Manning Company acquired a new machine by paying $40,000 cash and agreeing to pay $20,000 annually for four years, beginning on January 31, 2021. Assuming an interest rate of 10%, Manning should record the acquisition cost of the machine on January 31, 2020, at a.$120,000. b.$109,737. c.$103,397. d.$102,092JRE2 Incorporated entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract completion. Cost incurred Estimated Cost to Complete 2023 $ 250,000 $ 1,550,000 2024 1,600,000 500,000 2025 450,000 0 In 2025, JRE2 would report gross profit (loss) of:SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: December 31, 2021 December 31, 2022 Percentage of completion 30% 82.5% Estimated cost to complete 1,960,000 840,000 1. What is the total cost incurred in year 2022? С. 1,680,000 D. 3,120,000 A. 4,073,750 В. 840,000 2. The realized gross profit (loss) in year 2022 is A. 650,000 B. 405,000 C. (. 245,000) D. (1,055,000) 3. What is the construction cost of sales for year 2022? С. 3,233,750 D. 4,478,750 A. 3,960,000 В. 3,120,000 4. What is the construction-in-progress as of 2022? А. 3,423,750 C. 2,065,000 В. 3,310,000 D. 2,470,000
