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Big Steel Co

Accounting

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Big Steel Co. has the following accounts: Current assets $10,000

 

 

 

Property, plant & equipment $240,000

 Less: accumulated depreciation 100,000 140,000

Total assets $150,000

Gross profit $95,000

Depreciation expense $25,000

Tax expense $10,000

Net income $55,000

 

Question 1: The average age of fixed asset is estimated to be:

Question 2: the average age % of fixed assets is:

Below is budgeted production and sales information for Flushing Company for the month of December.

Product XXXProduct ZZZEstimated beginning inventory30,400 units19,900 unitsDesired ending inventory34,800 units15,000 unitsRegion I, anticipated sales349,000 units277,000 unitsRegion II, anticipated sales200,000 units140,000 units

The unit selling price for product XXX is $7 and for product ZZZ is $14.

 

Budgeted sales for the month is

a.$13,524,000

b.$9,681,000

c.$10,605,000

d.$6,762,000