1. An asset's book value is $18,000 on June 30, Year 6. The asset is being depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 7 for $15,000, the company should record:
2. The Lake Company purchassd a machine for $95,000 on January 2. The machine was estimated to have a $3,000 salvage value and a 4 year life. The machine was depreciated using the straigh-line method. During the third year, it was obvious that the machine's total useful life would be 6 years rather than 4, and the salvage at the end of the 6th year would be $1,500. Determine the depreciation expens for the machine for the 6 years of its life.
Year 1:
Year 2:
Year 3:
Year 4:
Year 5:
Year 6:
3. At the end of June, the job cost sheets for Monson Manufacturing show the following total costs accumulated on three custom jobs.
Job 203
Job 204
Job 205
Direct materials
$32,000
$47,000
$43,000
Direct labo
18,000
22,000
25,000
Overhead
26,100
31,900
36,250
Job 203 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $6,000; and overhead $8,700. Jobs 204 and 205 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 203 and 204 are finished in June, and Job 205 will be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions assuming the company's predetermined overhead rate did not change.
a. What is the cost of the raw materials requisitioned in June for each of the three jobs?
. How much direct labor cost is incu
ed during June for each of the three jobs?
c. What predetermined overhead rate is used during June?
d. How much total cost is transfe
ed to finished goods during June?