Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial direct labor operational productivity ratio for 2021 is: Multiple Choice 262 units per DLH. 169 units per DLH. 2021 600,000 960,000 1,800 $ 1,443,750 $67 2022 780,000 1,072,500 2,600 $ 2,333,750 $ 82

Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial direct labor operational productivity ratio for 2021 is: Multiple Choice 262 units per DLH. 169 units per DLH. 2021 600,000 960,000 1,800 $ 1,443,750 $67 2022 780,000 1,072,500 2,600 $ 2,333,750 $ 82

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $ 1,443,750 $ 2,333,750 Direct labor wage rate per hour $ 67 $ 82 The partial operational productivity ratio of DTV-12 in 2022 is: Multiple Choice 0.63 per unit. 0.73 per unit. 1.92 per unit. 3.00 per unit. 3.33 per unit.
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $1,443,750 $2,333,750 Direct labor wage rate per hour $67 $82 The partial operational productivity ratio of DTV-12 in 2022 is:
Required information [The following information applies to the questions displayed below.] Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used. Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour Direct materials Direct labor 2019 2019 960,000 1,050,000 240,000 per unit per hour $ $ Required: 1. Compute the partial operational productivity for both direct materials and direct labor for each of the 2 years. (Round your answers to 4 decimal places.) 165 $ 65 $ 2018 2018 1,160,000 1,190,000 290,000 per unit per hour 144 71
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?
7 Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. ■ Book Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial direct labor financial productivity ratio for 2022 is: Multiple Choice o 0.28. ( O O 0.36. 1.99. 3.10. 4.22. 2021 785,302 963,300 2,350 2022 1,033,292 1,078,000 3,205 $ 1,446,500 $ 2,336,500 $83.50 $ 104
An existing robot is used in a commercial material laboratory to handle ceramic samples in the hightemperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $2,000. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm’s before-tax MARR is 25% per year. Based on this information,should the existing robot be replaced? Assume that a robot will be needed for an indefinite period.
PKPP Consultants is currently in the process of completing the systems implementation activities for converting RMCO Company’s old system to a new one. Because of unexpected Covid-19 virus and movement control order, Harry, the project manager, is concerned about finishing the project on time. The one remaining activity is testing the new computer system and subsequently eliminating the old one. Harry suggests that they can still meet their completion deadline if they use direct conversion rather than parallel conversion. Required: Assuming that you are the Chief Information System Officer (CIO) of RMCO company, how would you react to Harry’s suggestion? Discuss.
Late in 2021, a “bug” was discovered in a software product that was installed for several of your company's clients. Although the bug was not your company's fault, the CEO of the company feels strongly that company software engineers should assist the clients with a programming solution since the company recommended the software. Clients will be contacted early in 2022 and should have fixes in place for all those affected by the end of the first quarter of 2022. The estimated cost is $7,000. Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements for 2021.
Splish Industries Ltd. is a company in the high-technology industry. Splish has been working on developing a new product for home entertainment, the holographic movie projector. The projector meets all of the six criteria required in order to capitalize development costs. During 2023, Splish incurred the following costs related to research and development: Rent of facility Salaries of research staff Legal costs to obtain new patent for projector Legal costs of successfully defending new patent in court Materials consumed in manufacture of prototypes Consulting fees paid for general research Indirect costs related to research and development Amount capitalized $130,000 $ 330,000 31,000 40,000 14,100 45,200 (a1) Calculate the amount that Splish would be allowed to capitalize as an intangible asset for 2023, assuming that Splish follows IFRS. 10,100
[The following information applies to the questions displayed below.] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device. Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Exercise 7-7 (Algo) Part 1 $ 3,600,000 1,120,000. 560,000 360,000 76,000 36,000 $ 5,752,000 Required: 1. How much should Satellite Systems capitalize in the Patent account in the balance sheet? Patent costs capitalized
Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Fields patent number 758-6002-1A is as follows. Date Activity Cost 2011–2012 Research conducted to develop precipitator $384,000 Jan. 2013 Design and construction of a prototype 87,600 March 2013 Testing of models 42,000 Jan. 2014 Fees paid engineers and lawyers to prepare patent application; patent granted June 30, 2014 59,500 Nov. 2015 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage 81,500 Dec. 2016 Legal fees paid to successfully defend precipitator patent 42,000 April 2017 Research aimed at modifying…
Requirements a. Prepare the journal entry required to record the impairment loss. b. Assuming that Lewad's uses the straight-line method with no residual value, prepare the journal entry to record the revised depreciation expense for the first year immediately following the impairment. c. Assume that 2 years following the impairment write-down, the fair value of the asset falls to $729,000. The sum of the undiscounted future cash flows is $755,000. What is the carrying value of the asset at this time? Prepare any journal entry necessary to reflect the change in fair value Print Done - x