Capitaliztion of the tooling supplies

Assignment Help Accounting Basics

Reference no: EM13143372

Auto Parts is one of the top three U.S. automobile manufactures. In the beginning of 2008, the company‘s CFO and controller decided that capitalization of the tooling supplies (The nature of the tooling supplies wear out quickly and needs frequent replacement) should be changed into the preferable method of accounting.The company changed its accounting policy accordingly and include the tooling supplies in other assets until the supplies are placed into service, at which time the company enters a journal entry to remove the assets and record the costs of the used supplies as an expense.

Question: Describe wether you agree that capitaliztion of the tooling supplies is the preferable method of accounting for Auto parts ,Inc.

Reference no: EM13143372

Questions Cloud

Entry to record depreciation : Is it necessary to do an entry to correct the prior years' depreciation? Prepare the entry to record depreciation for 2011

What would be average fixed inspection cost per unit : What would be average fixed inspection cost per unit at an activity level of 6,600 units in a month? Assume that this level of activity is within the relevant range.

Company weighted average cost of capital : What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion?

Determine dhreaction° : Determine ΔHreaction° for: 4H2O (l) + 2 NH3 (g) → 2NO2 (g) + 7H2 (g) using the following two equations: (1) N2 (g) + 3H2 (g) → 2 NH3 (g) ΔH1° = -184 kJ (2) 4NO2 (g) + 8H2 (g) → 2 N2 (g) + 8 H2O (l) ΔH2° = -196 kJ

Capitaliztion of the tooling supplies : Describe wether you agree that capitaliztion of the tooling supplies is the preferable method of accounting for Auto parts ,Inc.

Probability shipment will be accepted if it is defective : ssuming that the shipment includes 3% defectives, what is the probability that the shipment will be accepted? (Hint: Use the binomial distribution.)

Why d-glucose would be less likely than other aldoses : In an aqueous solution, virtually all D-Glucose molecules (>99%) are in pyranose form. Other aldoses have a greater proportion of molecules in the open chain form.

Define civil and environmental engineering : Civil and Environmental Engineering Question, 1. How is the problem of technology choice related to process selection and product design?

How much energy is released : Consider: C7H16 (l) + 11 O2 (g) → 7 CO2 (g) + 8 H2O (l) ΔH°reaction=- 4130 kJ. How much energy is released when 4.000 moles of C7H16, is combusted?

User Account

All Pages