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tamaranim1 [39]
2 years ago
13

The following is the general ledger for ABC Company as of December 31, 20X1. Use this information to answer questions (1) throug

h (4).
ABC Company

General Ledger

As of December 31, 20X1

Amount

Assets

Cash

$29,400

Accounts receivable

8,100

Supplies

4,900

Prepaid rent

20,200

Equipment (net)

63,800

Liabilities

Accounts payable

$ 6,300

Salaries payable

4,000

Interest payable

1,100

Utilities payable

3,700

Bonds payable

38,400

Stockholders' equity

Common stock

$60,900

Retained earnings

0

Dividends

2,100

Revenues

Sales revenue

$54,200

Interest revenue

1,400

Expenses

Cost of goods sold

$15,100

Salaries expense

7,100

Rent expense

4,900

Supplies expense

1,300

Utilities expense

4,800

Depreciation expense

2,500

Interest expense

2,100

Income tax expense

3,700

What is the amount of gross profit to be reported on ABC Company’s 12/31/X1 income statement?

$40,500

$14,100

$39,100

$17,800

What is the amount of operating income (EBIT) to be reported on ABC Company’s 12/31/X1 income statement?

$36,100

$18,500

$14,800

$14,100

What is the amount of earnings before taxes (EBT) to be reported on ABC Company’s 12/31/X1 income statement?

$15,000

$17,800

$12,000

$18,500

What is the amount of net income to be reported on ABC Company’s 12/31/X1 income statement?

$17,800

$12,000

$14,100

$18,500
Business
1 answer:
sweet [91]2 years ago
5 0

Answer:

What is the amount of gross profit to be reported on ABC Company’s 12/31/X1 income statement?

Gross Profit = Sales Revenue - Cost of Goods Sold

                    = $54,200 - 15,100

                    = $39,100

What is the amount of operating income (EBIT) to be reported on ABC Company’s 12/31/X1 income statement?

EBIT = Sales Revenue - Cost of Goods Sold - Operating Expenses

We have the following operating expenses:

Salaries expense $7,100

Rent expense = $4,900

Supplies expense = $1,300

Utilities expense = $4,800

Depreciation expense = $2,500

Total operating expenses = $20,600

Now we substract this figure from the gross profit we found above

EBIT = $39,100 - 20,600

        = $18,500

What is the amount of earnings before taxes (EBT) to be reported on ABC Company’s 12/31/X1 income statement?

EBT = Sales Revenues + Interest Revenue - Cost of Goods Sold - Operating Expenses - Non-Operating Expenses.

EBT = $54,200 + $1,400 - $15,100 - $20,600 - $2,100

      = $17,800

What is the amount of net income to be reported on ABC Company’s 12/31/X1 income statement?

Net Income = Sales Revenues + Interest Revenue - Cost of Goods Sold - Operating Expenses - Non-Operating Expenses - Tax Expense

We simply substract the Tax Expense ($3,700), from the EBT.

Net Income = $17,800 - $3,700

                   = $14,100

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Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

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What is happening with Unemployment of Indonesia over the past 2 or 3 years?
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Answer:

The unemployment rate in Indonesia increased to 6.26 percent in the first quarter 2021 from 4.94 percent in the same quarter a year earlier, amid the economic downturn caused by the coronavirus crisis. The number of unemployed persons surged by 1.82 million to 8.75 million. Meanwhile, the number of employed declined by 2.23 million to 131.06 million, mostly in the transportation and warehouse (-0.30 percent) while that in accommodation and food services reported the largest increase (0.34 percent). Meantime, the labor force participation rate declined to 68.08 percent in the first quarter from 69.21 percent in the prior year. 

Explanation:

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During November, the production department of a process operations system completed and transferred to finished goods 31,000 uni
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Answer:

200,800 units

Explanation:

<u>Calculation of Equivalent units of Production of Conversion Costs</u>

Method : weighted-average method.

Completed and Transferred (181,000 × 100%)             = 181,000

Ending Work In Process (33,000 × 60%)                     =   19,800

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