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quester [9]
3 years ago
5

Bergeron is a local manufacturer of off-shore drilling platforms. In 2020, Bergeron entered into a contract to construct a drill

ing platform, which will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Bergeron estimates the total construction cost at $2,000,000. Actual costs incurred in 2020 are $600,000. If Bergeron uses the completed contract method, the gross profit for 2020 is
Business
1 answer:
forsale [732]3 years ago
6 0

Answer:

$900,000

Explanation:

The first step is to calculate the percentage completed

= 600,000/2,000,000

= 0.3

The revenue can be calculated as follows

= 5,000,000 × 0.3

= 1,500,000

Therefore the gross profit for 2020 can be calculated as follows

=1,500,000 -600,000

= $900,000

You might be interested in
Project Q has an initial cost of $211,415 and projected cash flows of $121,300 in Year 1 and $176,300 in Year 2. Project R has a
vlada-n [284]

Answer:

Project Q should be accepted.

Explanation:

In this question, we have to use the profitability index formula which is shown below:

Profitability index = Present value of all years cash flows ÷ Initial investment

where,

Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

So,

For year 1 = 0.9216 (1 ÷ 1.085) ∧ 1

For year 2 = 0.8495 (1 ÷ 1.085) ∧ 2

Now, multiply this present value factor with yearly cash inflows

So

For Project Q,

The present value of year 1 = $121,300 × 0.9216 = $111,797.235

The present value of year 2 = $176,300 × 0.8495 = $149,758.967

and the sum of all year cash inflow is 261,556.202

So, the Profitability index would be equal to

= $261,556.202 ÷ $211,415

= 1.23

For Project R,

The present value of year 1 =  $187,500 × 0.9216 = $172,811.059

The present value of year 2 = $236,600 × 0.8495 = $200,981.121

and the sum of all year cash inflow is $373,792.180

So, the Profitability index would be equal to

= $373,792.180 ÷ $415,000

= 0.90

Since, the Project Q has high profitability index than Project R, so Project Q should be accepted.

4 0
2 years ago
ABC uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retai
Licemer1 [7]

Answer:Ending Inventory at Cost= $981,248.40

Explanation:

                                     Cost                      Retail

Beginning inventory  $393,500         $594,000

purchases                      $3,408,000      $5,193,600                

freight in                        $159,500,

net markups                                                     $414,000

Total                          $3,961,000                     $6,201,600

Sales                                                 $4,666,000

Ending Inventory at Retail:=(Beginning inventory + purchases +net markups - Sales during the current year

594,000 + $5,193,600   +  $414,000- $4,666,000,  = $1,535,600

Cost to Retail Ratio:( Beginning inventory + purchases+freight in)/ (Beginning inventory + purchases +net markups )

=($393,500 + $3,408,000 +$159,500,) ÷ (594,000 + $5,193,600   +  $414,000) =$3,961,000/$6, 201, 600= 0.638= 0.639

Ending Inventory at Cost:   Ending Inventory at Retail x Cost to Retail Ratio

$1,535,600 x 0.639 = $981,248.40

8 0
3 years ago
Wood and glass used to create frames for customers. The owner’s experience in seeking out the best wood and glass suppliers. Spe
exis [7]
Is this a true or false question if so its true if not can you give me possibility anwsers <span />
5 0
2 years ago
"When people act contrary to their self-perceptions as reasonable and sensible people, they experience a feeling known as ______
blondinia [14]

Answer:

The answer is letter D. Cognitive Dissonance

Explanation:

When people act contrary to their self-perceptions as reasonable and sensible people, they experience a feeling known as _cognitive dissonance_______.

7 0
3 years ago
At the beginning of 2020, Sun Angel Corporation began offering a two-year warranty on its products. The warranty program was exp
Artemon [7]

Answer:

$2,210,126

Explanation:

Calculation to determine what The amount reported on Sun Angel's 2020 year end balance sheet for Estimated Warranty Liability is:

Estimated Warranty Liability=(1%+3%*$184,743,795)-$5,179,626

Estimated Warranty Liability=$7,389,752-$5,179,626

Estimated Warranty Liability=$2,210,126

Therefore The amount reported on Sun Angel's 2020 year end balance sheet for Estimated Warranty Liability is:$2,210,126

5 0
2 years ago
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