Engineering Eco PDF Free
Engineering Eco PDF Free
Engineering Eco PDF Free
A machine which cost P10,000 was sold as a scrap after being used for 10
years. If the scrap value was P500, Determine the total depreciation at the
end of the fifth year.
The cost of a certain asset is P3,000 , its life is 6 years and scrap value is
P500. Find the annual rate of interest of depreciation under constant
percentage method, and construct a depreciation table
b.) Depreciation charges during the fifth year using the SYD method
A dump truck was bought for P30,000 six years ago . It has a salvage value of
P3,000 four years from now . It was sold now for P8,000 . What is the sunk
cost if the depreciation method is used is :
a.)Straight-Line method
b.)Sinking fund method at 6%?
a.)Straight-Line method
b.)Working hours
c.)Output method
Determine the annual provision for depreciation for years 1978 to 1980 and
the adjusted provision for depreciation on December 31, 1981. Assume
payment in cash for the maintenancce and repairs.
The total gross income of the oil company in Problem P7-12 from the 200,000
barrels of oil produced is P30,000,000. The taxable income after deducting all
expenses excluding depletion is P11,800,000. Determine the allowable
depletion allowance for the year.
A coal minign company has owned a mine for the past five years . During this
time the following tonnage of ore has been removed each year: 25,000 ;
32,000; 36,000; 30,000; and 28,000 tons. The mine is estimated to contain a
total of 500,000 tons of coal. The initial cost of the mine is P12,000,000. If the
company had a gross income for this coal of P220 per ton for the first two
years, and P300 tper tons for the last three years, a.)determine the depletion
charge for each year using the larger values for the two methods and b.)
compute the percent of the initial cost that has been written off in the five
years.
The Carryall Trucking Company uses three delivery truks that cost P100,000;
P120,000; and P150,000. The estimated salvage values are P20,000;
P25,000; and P35,000. All truckshave an expecteed service life of 10 years.
Determine group dpreciation rate and annual depreciation.
Solve Example 7-10 using the same data. However, calculate the actual
annual depreciation by assuming that the company uses a service life of 8
years for all models and one-half of the salvage values.
Construct the amortization schedule for a dept of P10,000 with interest at the
rate of 19%, payable semi-annually, which is paid for, principal and interest
included, by payments of P2,000 at the end of each 6 months for as long as
necessary.
You urchased a P5,000 bond for P5,100. The bond pays P200 per year. It is
redeemable for P5,050 after 10 eyars. What is the net rate of interest on your
investment?
RATE SCHEDULE
General Services :
X-1 Connected Load - 1 to 5,000 watts inclusive
Energy Charges :
A P1,000 bond which will mature in 10 years and with a bond rate of 8%
payable annually is to be redeemed at a par at thee end of this period. It is
sold for P1,030. Determine the yild at this price.
A man was offered a Land Bankcertificate with a face value of P100,000
which bears interest of 8% per year payable semi-annually and due in 6
eyars. If the man wants to earn6% semi-annually, how much musst he pay for
thee certificate?
A food manufacturing plant has a waste product that has now being dumped
into a river. The industrial waste material could be processed fertilizer or a
remixed waste to digest the organic materials to produce methane, carbon
dioxide and bacterial cells. This would require the investment of P32,000 in
equipment and P5,300 a month for other materials. Labor could cost P1,400
per month. Overhead epenses will cost P5,600 a year. Taxes and insurance
amount to 3% of the first cost of the equipment per year . Payroll and other
benefits amount to 4% of the first cost. The life of the equipment is 5 years
with no salvage value at the end of its life. Money is worth 20% to the
company. If 3,000 kilograms of fertilizers are produced each month which can
be sold for P2.20 per kilograms, should the firm make the investment ?
The ABC Company manufactures Part No. 1001 for use in its tracktor
assembly operation . The cost per unit for 5,000 units of this part is total of
P26,000 for the following:
The LMR company offered to sell to ABC company 5,000 units of the same
part for P27.00 each . If the ABC Company accepts, some of its facilities
presently used to manufacture this part could be used to help with the
manufacture of the same part, thus saving P40,000 in relevant cossts in its
manufacturing and eliminate P3.00 per unit of the fixed factory overhead
applied to this part.
The engineer will give up in his regular job paying P15,000 per year
and devote full time to his business. This will result in decreasing labor cost
by P10,000 per year, materials cost by P7,000 per year, aand overhead by
P8,000 per year. If the engineer expects to earn at least 20% on his capital,
should he invest.
An ice plant owner decided to install a water pump from a near by clean
fresh water sourse to supply its water requirements. The capacity of the
pump is 45.5 cu.m. per hour against a ehad of 43 meters with an efficiency of
70% at full load and 40% at half load. The total cost of the pumping unit
including the piping system to the plant is P700,000 with zero sallvage value
at the end of its estimated life of 20 eyars. The prime mover of the pump is
an electric motor and cost of the power is P2.10 per kw-hr. Taxes, insurance
and maintenance cost is P1.5% of the first cost per year. The pump will
operate 200 days continuous operation per year at half loaf and 150 days at
full load. If the cost of the money is 12%, how much will it cost the owner to
operate the ump per cubic meter ?
Two project studies for the construction of an engineering building are under
consideration. On one study the cost of the building is P650,000 with a life of
20 years and a salvage value of P40,000. Yearly maintenance and repair is
P1,800. The other proposes a first cost of P720,000, life of 30 years and a
salvage value of P60,000. Yearly maintenance and repairs is P2,000. If the
yield on the investment is 6%, determine which project study is acceptable.
Superior Air Products Co., Inc. will install an induction motor costing P40,000
whith an efficiency of 88% and a power factor of 75% or asynchronous motor
costing P48,000 having an efficiency of 87% and a power factor of 98%. The
power output of each motor will be 15,000 kw-hr per month. Power costs
P0.30 per kw-hr prior to the application of any bonus or penalty for power.
The panay Electric Co. provididing current will reduce its bill according to the
following clause : if the power factor exceeds 80% the bill will be reduced by
0.4% for each 1% such excessup to 90% power factor , and by 0.3% for each
1% excess from 91% to 100% power factor . No bonus or penalty will be
given for any power factor between 70% and 79%. Compare the moonthly
power bills for the two motors and ive your recommendations.
Machine A Machine B
Basing on annual cost and using the straight line with an average interest
method, determine machine you would choose.
A cold storage plant desires to determine whether to use insulation 2 inches
thick or 3 inches thick in insulating the walls of the cold storage warehouse.
Heat absorbed thrugh the wall without insulation would cost P96,00 per sq.m.
A 2-inch insulation will cost P30.40 per sq.m. and will cut out 89% of the loss.
A 3-inch insulation will cut out 92% of the loss and will cost P65.60 per sq.m
Using a life of 15 years for the insulation with no salvage value and a
minimum attractivereturn of 8%, what thickness of insulation should be used?
Use annual cost method.
If the machines are crated so that they can be shipped in mixed car lots along
with other merchandise, they can be shipped at a rate of P3.30 per hundred
kilograms with the freight bill computed on actual weight shipped. The cost of
the crating would be P8.00 and would increase the shipping weight from 545
to 555 kilograms per machine. Which procedure should be followe? ( One ton
= 1,000 kilograms )
The operation requires 8 to 10 hours per day, 365 days a year. Average
weight of cut woo to be transported per day is 100 tons.
3. Labor cost to operate the system 8 tp 10 hours a day, 365 days a year
=P75,000.
An industrial firm received an offer for suupply of two electric motors which
are being considered o power an industrial trial hoist. Each motor is capable
of providing 100hp. Other pertinent data for each motor are as follows :
Motor A Motor B
Money is worth 20%. If the expected usage of the hoist is 700 hours per year,
what should be the cost of electric power before Motor A is favored over
Motor B ?
a.) Diesel fuel at P5.00 per liter and the tanker consumes 120 liters per round
trip from batangas to paco and back.
c.)Labor including overtime and fringe benefits for one drover and one helper
is P7,000 per month.
f.) Tire costs P21,000 per set and will be renewd every 150 round trips.
What should the MGC Company do if a 15% interest rate on investment
is included in the analysis?
The Asset Privatization Trust put up for sale a machine manufacturing plant.
There were two bidders with the following proposals:
A paint manufacturing company uses a sand mill for fine grinding of paint
with an output of 100 liters per hour using glass beads as grinding meadia.
Media load in the mill is 25 kilograms costing P200 per kilogram and is ffully
replenished in 2 months time at 8 hours per day operation, 25 days per
month. A ceramics grinding media is offered to the company costing P400 per
kilogram and needs 30 kilograms in the sand mill, but guarantees an output
of 120 liters per hour and full replenishmen of media in 3 months. If the profit
on paint production is P1.50 per liter, would you recommend the change in
media?
An untreated electric wooden pole that will last 10 years under a certain soil
condition cost P1,200. If a treated pole will last for 20 years, what is the
maximum amount that can be paid for the treated pole if the maximum
return of the investment is 12%? Consider annual taxes and insurance to be
1% of the first cost
The first offer it received is for a gasoline engine driven unit with an
estimated life span of 5 years and would cost the company P52,000. The
annual maintenance cost is estimated to be P8,300 , annual operation cost
would be P27,000 and salvage value would be P7,200.
The second offer the company received is for Diesel engine driven unit
with an estimated life span of 10 eyars annual maintenance cost of P5,800,
operating eyarly cost of P18,800 and salvage value of P11,900. The price
offered for the unit is p98,250.
A machine that costs P5,000 will last 20 years and have a scrap value at the
time of P500. Repairs will average P300 a year. Operating expenses, including
the wage of the operator will be P400 a month. A second machine will
produce twice as many unitsper year. It costs P50,000 and must be replaced
at the end of 25 years at a cost of P45,000. Repairs for the machine will be
average P250 per year, and operating expenses will be P500 per month. if
oney s worth 5% effective, how much will be saved, if any ,each year by
purchasing the mroe economical machine ?
Present age,years 5 0
Taxes and insurance 4% 4%
There are 2,400 working hours each year on the old machine lathe. If money
is worth 10% to the company , should replacement be made now ?
The direct labor cost and direct material cost of a certain product are P300
and P400 per uit, respectively. Fixed charges are P100,000 per month and
other variable costs are P100 per unit. if the product is sold for p1,200 per
unit , how many units must be produced and sold to break-even ?
A certain firm has the capacity to produce 650,000 units of a certain product
per year. At rpesent ,it is opertaing at 62% capacity. The firm's annual income
is P4,160,000. Annual fixed costis P1,920,000 and the variable costs are
equal to P3.56 per unit.
A local factory assembling calculators produces 400 units per month and sells
them at P1,800 each. Dividens are 8% on the 8,000 shares with par value of
P250 each. The fixed operating cost per month is P25,000. Other costs are
P1,000 per unit. Determine the brea-even point. If only 200 units are
produced each month, determine the profit or loss.
In the manufacture of a certain product two processes are available. One will
produce 80 units of the finished product per P100.00 worth of raw materials,
and will cost P0.42 per unit of the finished product per P100.00 worth raw
materials and will cost p0.56 per unit of the finished product. What is the
break-even point in unit value of the finish product below which the low
efficiency process should be used and above which the high efficiency
process should be used?
The following ata are available for the Canlubang Automotive Company which
manufactures and sells a single automotive product line :
a.) What is the break-even point in units for the current year?
The Asian Transmission Company makes and sells automotive parts. Present
sales volume is 500,000 untis a year at a selling price of P0.50 per unit. Fixed
expenses total P80,000 per year/
Machine A Machine B
Life(years) 10 6
Number of operators 1 3
Output(units/hour) 25 15
A plant has a capacity of producing 800,000 units per year foa product which
it sells for P1.50 per unit regardless of output. The annual fixed cost are
P280,000 and a variable cost of P480,000 at 75% capacity. a.) What is the
fixed cost per unit at the break-even point ? b.) What is net profit at 100%
capacity if the company is in the 40% tax bracket?
Location A B
Project A B C
None 0 0 P5,200,000
A P21,900,000 P120,000
P2,900,000
B P15,400,000 P105,000
P3,200,000
C P14,500,000 P90,000
P4,000,000
The damage listed in the last column are those that would occur if only the
ccorresponding dam is built. if more than one dam is built, the total savings
are assumed to be the sum of the savings that each would achieve by itself. If
the cost of capital is 8%, which dam, if any, should be built?Use B/C analysis
Alternative P Q R
Alternative A B C D
Project A B C D
E
A P4,200,000 P3,900,000
B P3,800,000 P4,000,000
C P6,400,000 P7,000,000
D P5,700,000 P4,900,000
E P3,200,000 P2,700,000
F P7,500,000 P6,900,000
PRELIMS
Juan dela Cruz borrowed money from a bank . He received P1,340 and
promised to pay P1,500 at the end of 9 months . Determine the following :