Answer:
$143,356
Explanation:
The computation of the increased in the operating income if the special order is accepted is
Sales (62,000 units × $13.80) $855,600
Less: cost of goods sold -$664,418
($5,628,000 - $1,320,000) ÷ 402,000 units × 62,000 units
Less: Operating expenses -$47,826
($422,100 - $112,000) ÷ 402,000 units × 62,000 units
Operating income $143,356
We simply deduct the operating expenses and the cost of goods sold from the sales revenue so that the increase in operating income could come
Answer:
Kodak sold its PPE for $108 million
Explanation:
The question here has missing sales figure for a PPE item for which the gain on sale is $14 million (given) .Sale price of PPE item are obtained from a PPE Disposal account.We need to first find the other missing figures of 1. Cost of the Sold PPE and 2. The Accumulated Depreciation of the Sold PPE item. After that we complete our PPE disposal account to find the missing figure of the Sale Price of PPE.
1. Cost of Sold PPE
Open a PPE at Cost Account: Opening Balance $ 7327 million (Debit), Addition of PPE $ 254 million (Debit),Closing Balance $6805 million(Credit).The Balancing figure of this account $ 776 million (credit) {7327+254-6805} is the cost of the PPE item sold.
2. Accumulated Depreciation of the Sold PPE Item
Open a PPE Accumulated Depreciation Account : Opening Balance $ 5516 million (Credit), Depreciation Expense $ 420 million (Credit), Closing Balance $ 5254 million (Debit). The Balancing figure of this account $682 million (Debit) is the Accumulated Depreciation of the PPE item disposed or sold.
3. Disposal Account and Calculation of the Sale Price (Balancing figure)
Open a PPE Disposal Account : Cost of PPE $ 776 million (Debit), Gain on Sale of PPE $ 14 million (Debit), Accumulated Depreciation of the PPE Sold $ 682 million (Credit). The Balancing figure of this account $ 108 million (Credit) {776+14-108} is the Sale Price of PPE item.
Thus Sale price of the PPE is $ 108 million.
D anyone interested in the topic
Answer:FALSE
Explanation: Accumulated depreciation is a negative account (contra-account) which Describes the total depreciation amount allotted to an asset since it is put into use. Accumulated depreciation is not added to the balance of the long lived asset in the balance sheet.
When an organization prepares it's balance sheet,it ensures that the depreciation schedule is recorded for all it's assets ensuring that both the cost of the equipment and it's depreciation is documented accordingly. Accumulated depreciation reduces the value of the assets in the balance sheet when added.
The answer is Sales receipt
