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Mini - case for Week 2 : Beach Front Foods Inc., a dynamic manufacturing company, recently made a strategic decision to enhance its production capabilities
Minicase for Week : Beach Front Foods Inc., a dynamic manufacturing company, recently made a strategic decision to enhance its production capabilities by acquiring stateoftheart machinery from an overseas supplier. The new machinery is a substantial longterm asset that promises increased efficiency and production capacity. Challenges: Upon the arrival of the machinery, the company's controller, Sara Nagy, found herself grappling with recording the costs associated with this significant acquisition. She was particularly challenged with determining the initial cost of the machinery, including all relevant expenses such as shipping, import duties, and installation costs as follows: Purchase price of $ less $ rebate. Paid shipping fees of $ Paid customsduty fees of $ Paid $ for the installation of the machinery. Paid $ to train employees and supervisors to use the machinery. Furthermore, she was uncertain about the appropriate accounting treatment for depreciation, classification, and disclosure in financial statements. Please write a memo about three paragraphs to Sara be sure to address the issues outlined in the case and make specific recommendations. Also, remember to respond to your peers' posts to help facilitate an engaging discussion!
Minicase for Week :
Beach Front Foods Inc., a dynamic manufacturing company, recently made a strategic decision to enhance its production capabilities by acquiring stateoftheart machinery from an overseas supplier. The new machinery is a substantial longterm asset that promises increased efficiency and production capacity.
Challenges:
Upon the arrival of the machinery, the company's controller, Sara Nagy, found herself grappling with recording the costs associated with this significant acquisition. She was particularly challenged with determining the initial cost of the machinery, including all relevant expenses such as shipping, import duties, and installation costs as follows:
Purchase price of $ less $ rebate.
Paid shipping fees of $
Paid customsduty fees of $
Paid $ for the installation of the machinery.
Paid $ to train employees and supervisors to use the machinery.
Furthermore, she was uncertain about the appropriate accounting treatment for depreciation, classification, and disclosure in financial statements.
Please write a memo about three paragraphs to Sara be sure to address the issues outlined in the case and make specific recommendations. Also, remember to respond to your peers' posts to help facilitate an engaging discussion!
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