A factory engaged in the fabrication of an automobile part with a production

# A factory engaged in the fabrication of an automobile

• 4

This preview shows page 4 out of 4 pages.

33. A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P430,000. Annual fixed cost are P190,000 and variable cost are P0.348 per unit. Determine the profit of the company. a.89658b. 88713c. 89320d. 88968 34. An asset is purchased for P500,000. The salvage value in 25 years is P100,000. What is the total depreciation in the first three years using SLM. 35. The cost of the printing equipment is P500,000 and cost of handling and installation is P30,000. If the book value of the equipment at the end of the 3rdyear is P242,000 and the life of the equipment is assumed to be 5yrs, determine the salvage value of this equipment at the end of 5 yrs. 36. A plant to manufacture socks has a first cost of P10,000,000 with an estimated salvage value of P100,000 at the end of 25 years. Find the appraised value using sinking fund method assuming an interest of 6% at the end of 10 years. 37. A machine costs P7350 has a life of 8 years and has a salvage value of P350 at the end of years. Determine its book value at the end of 4 years using Declining balance method. a.1695.5b. 1239.7c. 1852.0d. 1603.938. A machine costs P80,000 and has an estimated salvage of P20,000 at the end of 20 years useful life. Compute the book value of the machine after 2 years using SYD method. 39. An equipment costs P500,000 and has a salvage value of P25,000 after its 25 years useful life. Using double declining balance method. What will be the book value of the equipment at the end of 8 years. • • • 