A waste-holding lagoon situated near the main plant of a chemical company receives sludge on a daily basis. When the lagoon is full, it is necessary to remove the sludge to a site located 4.95 kilometers from the main plant. Currently, when the lagoon is full, the sludge is removed by pumping it into a tank truck and hauling it away. This process requires the use of a portable pump that has an initial cost of $800 and an 8-year life. The com-pany can operate the pump at a cost of $25 per day, but the truck and driver cost $110 per day. Alternatively, the company has a proposal to install a pump and pipeline to the remote site. The pump would have an initial cost of $600, a life of 10 years, and a cost of $3 per day to operate. (a) If the MARR is 15% per year and the pipeline will cost $3.52 per meter to construct, how many days per year must the lagoon require pumping to jus- tify construction of the pipeline?
(b) The lagoon was pumped 40 times last year. Which alternative would have been cheaper?

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is:

Three years ago, stock tek purchased some five-year macrs property for $82,600. today, it is selling this property for $31,500. how much tax will the company owe on this sale if the tax rate is 34 percent? the macrs allowance percentages are as follows, commencing with year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.