0
· Here are the questions, I'm really stuck on where to go. Any help would be much appreciated.
The company has two buildings including associated land. One building and its land has been dedicated to the fabrication portion of the manufacturing process and the other building/ land plays multiple roles. The other building is the location for the executive offices, the accounting department, the assembly portion of the manufacturing process, and a service organization that maintains and repairs production equipment for both fabrication and assembly. The first building/ land costs $10,000 and the second building/ land is also $10,000. Both buildings were purchased at the same time and have the same life expectancy.
The breakout of square feet in the second building is 30% for the executive offices, 30% for the Accountants, 30% for the assembly function, and 10% for the service function.
· There are 3 machines in the first building supporting fabrication. The costs are distributed as follows: 80% of the time is dedicated to producing the product and 20% represents the time used for machine maintenance. There are two machines in the second building that also have 80% for product build and 20% maintenance.
· The direct labor personnel dedicate 75% of their time to actually building the product, 20% for improvement projects, and 5% to community service. Indirect personnel (including the service organization) support the manufacturing process 80% of the time, 15% is dedicated to improvement projects, and 5% of their time to community service. Finally, the sales and administration organizations dedicates 70% of their time to their prime responsibilities, spend 25% of the time on improvement projects , and 5% on community service,
· There are a total of 10 notes of which the first one will become due during the current year. The 10 notes are of equal value.
· The Bonds included in this problem have a remaining life of 8 years before they are due. The interest has already been accrued for the current period.
What else can I help you with?
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
What are the basic issues related to accounting for intangible assets?
Some of the basic issues related to accounting for intangible assets are non-monetary assets which are not seeable. This generates time and effort to classify separate asset. Legal intangibles and Competitive intangible are customers' information, rights, and cost within the organization. It is also recorded as organization's cost.
What is abnormal loss in cost accounting?
Abnormal loss is an unexpected loss in financial assets in business activities.
What is depreciation and amorization?
Depreciation and amortization are accounting methods used to allocate the cost of an asset over its useful life. Depreciation applies to tangible assets, such as machinery or buildings, reflecting their wear and tear over time. Amortization, on the other hand, pertains to intangible assets, like patents or copyrights, spreading their cost over a specified period. Both processes help businesses accurately represent asset values and expenses on their financial statements.
What is arbitrary allocation in cost accounting?
allocate cost arbitrarily
What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
What is the wearing out of goods called?
The wearing out of goods is referred to as "depreciation." This term describes the reduction in value of an asset over time due to factors such as wear and tear, obsolescence, or age. In accounting, depreciation is used to allocate the cost of tangible assets over their useful lives.
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
What is the different between cost accounting and financial accounting?
the question am asking have not been answered .because financial accounting and cost accounting is not the same nor even having the same answer .
What are the basic issues related to accounting for intangible assets?
Some of the basic issues related to accounting for intangible assets are non-monetary assets which are not seeable. This generates time and effort to classify separate asset. Legal intangibles and Competitive intangible are customers' information, rights, and cost within the organization. It is also recorded as organization's cost.
What is abnormal loss in cost accounting?
Abnormal loss is an unexpected loss in financial assets in business activities.
What is depreciation and amorization?
Depreciation and amortization are accounting methods used to allocate the cost of an asset over its useful life. Depreciation applies to tangible assets, such as machinery or buildings, reflecting their wear and tear over time. Amortization, on the other hand, pertains to intangible assets, like patents or copyrights, spreading their cost over a specified period. Both processes help businesses accurately represent asset values and expenses on their financial statements.
What course is more difficult management accounting or cost accounting?
I am not sure which is more difficult, that is why I am asking you this question!
What are deprecialable Assets?
Depreciable assets are tangible fixed assets that have a limited useful life and can lose value over time due to wear and tear, obsolescence, or other factors. Examples include machinery, vehicles, buildings, and equipment. Businesses can deduct the cost of these assets over their useful life through depreciation, which helps allocate the expense of the asset over the periods it contributes to revenue. This accounting practice reflects the declining value of the asset and matches expenses with the income generated from its use.
What is the foundemental concepts of accountincy?
The basic concepts of accounting include: Cost, Money Measurement, Entity, Assets Liabilities, etc.
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
