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levacccp [35]
3 years ago
8

Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated constructio

n costs at inception was $4,000,000. The construction project was completed after two years. Below are the actual costs for years 1 and 2: DescriptionCumulative Year 1Year 2Cost incurred to date1,200,0002,500,000Estimated additional costs to complete3,600,0002,100,000Billings1,050,0002,300,000Cash Collections1,000,0001,900,000 Red has determined that this contract qualifies for revenue recognition over time (as opposed to upon completion). As a result, Red Builders should have recognized profit at the end of year 1 in the amount of:
Business
1 answer:
Evgesh-ka [11]3 years ago
4 0

Answer: $300,000

Explanation:

Total expected costs = cost incurred to date + estimated cost to complete

                                   = 1,200,000 + 3,600,000

                                   = 4,800,000

Percentage of completion=\frac{Cost\ incurred\ to\ date}{Total\ expected\ cost}\times 100

Percentage of completion=\frac{1,200,000}{4,800,000}\times 100

                                                 = 0.25

                                                 = 25%

Profit = contract revenue - Total expected costs

         = $6,000,000 - 4,800,000

         = $1,200,000

Cumulative gross profit = Profit × Percentage of completion

                                       = $1,200,000 × 0.25

                                       = $300,000

Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.

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Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p
Sonbull [250]

Answer:

Sonic Inc.

a) Sales Budget:

                                      Rumble            Thunder

Total units sold              8,550                7,450

Unit sales price               $135                  $210

Sales value            $1,154,250       $1,564,500

b) Production Budget:

                                                        Rumble      Thunder

Total units sold                                    8,550          7,450

Desired inventory (units), June 30       299               56

Estimated inventory (units), June 1       260               64

Units to be produced                         8,589           7,442

Explanation:

a) Data and Calculations:

                                                           Rumble      Thunder

Total units sold                                    8,550          7,450

Desired inventory (units), June 30       299               56

Estimated inventory (units), June 1       260               64

Units Produced                                   8,589           7,442

                                              Rumble      Thunder

Expected sales volume (units):

Midwest Region                     3,650          3,200  

South Region                         4,900          4,250

Total units sold                      8,550          7,450

Unit sales price                       $135            $210

a) The Sonic Inc.'s sales budget determines the production budget.  When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.

b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain.  It is the production budget that guides production planning, including the type, design, and other features of the product.

6 0
3 years ago
The best defensive driving strategy in planning ahead for an evasive action on the road includes:
Pie

Answer:

A) Scan the highway far and wide.

B) Think about how slow, stop or change lanes suddenly.

Explanation:

The Smith Driving Standards can be a very useful guide for defensive driving techniques. It includes the Five Principles of Defensive Driving:

  1. Aim high : you should be alert and focused, and your head should be held up high so that you can view the whole road.
  2. The Big Picture : try to identify angry or erratic drivers, and always be aware of your surroundings.
  3. Keep Your Eyes Moving: you must be alert and keep your eyes on the road.
  4. Leave Yourself An Out : try to anticipate what other drivers are doing so that you have a possible exit in case you need to change lanes suddenly.
  5. Ensure they see you: make sure other drivers have noticed you.

7 0
3 years ago
McKendrick Shoe Store has a beginning inventory of $45,000. During the period, purchases were $195,000; purchase returns, $6,000
NikAS [45]

Answer:

d. $249,000

Explanation:

cost of goods available for sale

= $45,000 + $195,000 - $6,000 + $15,000

= $249000

Therefore, The cost of goods available for sale was $249000.

6 0
3 years ago
Sebastian is an employee at Plowell Inc. His duties include preparing reports and analyzing company data. He also appraises fina
Angelina_Jolie [31]

Answer:

The answer is option (D) management accountant.

Explanation:

A management accountant is an employee who prepares financial and non-financial data, verify the data, interpret information from such data and combine them (both financial and non-financial) in order present a complete picture of the business.

The results of management or managerial accounting help a company make informed business decisions that would ensure the success of the business and help sustain it.

7 0
3 years ago
Incident managers begin planning for the demobilization process when:
vampirchik [111]
Incident managers begin planning for the demobilization process when B. INCIDENT ACTIVITIES SHIFT FROM RESPONSE TO RECOVERY.

Demobilization occurs when the incident objectives have been met. 

<span>Demobilization is the orderly, safe, and efficient return of all resources used in the incident to its original status and location. It must be done as soon as possible to facilitate accountability of the resources.</span>

5 0
3 years ago
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