Answer:
$8000
Explanation:
Given that:
Adjusted basis of sport plane = $112,000
Sales price = $140,000
Down payment = $40,000
Balance paid in $20,000 installment for the nest 5 years
Gross income:
Gross income = sales price - adjusted basis
Gross income = $140,000 - $112,000
Gross income = $28,000
Based on the installment payment of $20,000:
140,000/20,000 = 7
Gross income = $28000/ 7 = $4000
With down payment being 40,000
In year 1, down payment of $40,000 was made, which is 2 times the yearly installment amount.
Hence gross profit in year 1 = $4000 × 2 = $8000
Answer:
$10,900
Explanation:
The computation of net operating income (loss) for the month under variable costing is shown below:-
Sales = Selling price × Units sold
= $116 × 8,600
= $997,600
Variable cost = (Direct material + Direct labor + Variable manufacturing overhead + Variable selling and administrative expenses) × Units sold
= ($19 + $61 + $7 + $11) × 8,600
= $98 × 8,600
= $842,800
Contribution Margin = Sales - Variable cost
= $997,600 - $842,800
= $154,800
Fixed cost = Fixed manufacturing overhead + Fixed selling and administrative expense
= $135,000 + $8,900
= $143,900
Net operating income = Contribution Margin - Fixed cost
= $154,800 - $143,900
= $10,900
Therefore for computing the net operating income we simply applied the above formula.
Answer: Copyright 1 - $0
Copyright 2 - $30000
Explanation:
Copyright 1 shouldn't be reported on the balance sheet. This is because the cost with regards to internally developed copyright will have to be expensed. Therefore, copyrights 1 on the balance sheet will be $0.
Copyright 2 will be reported on the balance sheet with a value of $30000. The copyright's cost of acquisition will have to be capitalized.
Answer:
The predetermined overhead rate is 29.81 per machine hour
Explanation:
Fixed predetermine overhead rate = Estimated fixed manufacturing overhead / Estimated machine hour
Fixed predetermine overhead rate = $944,762 / 40,600
Fixed predetermine overhead rate = $23.27 per machine hour
Total predetermine overhead rate = Fixed predetermine overhead rate + Estimated variable manufacturing overhead
= $23.27 + $6.54
= 29.81 per machine hour
