Answer:
$486,000
Explanation:
According to the scenario, computation of the given data are as follow:-
Budgeted Cash Disbursements for August
Particular Amount ($)
Direct material purchase for July ($210,000 × 30%) 63,000
Direct material purchase for August ($390,000 × 70%) 273,000
Add-wages paid 50,000
Add: Office equipment purchase 62,000
Add: Selling and administrative expenses 38,000
Total 486,000
The depreciation is a non cash expense and the same is not relevant. Hence, ignored it
Answer:
$117,201
Explanation:
Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is
Using this formula
Cost basis=Cash+Note payable+Mortgage
Let plug in the formula
Cost basis=$32,829+$26,957+$57,415
Cost basis=$117,201
Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201
Answer: $150,000
Explanation:
The total cost of estimating and preparing the bid would normally fall between 1% and 2% of the total price of the bid.
It would therefore be best to use an average rate of these:
= ( 1 + 2) / 2
= 1.5%
The estimate will therefore be:
= 1.5% * 10,000,000
= $150,000
Answer:
Total Asset $2,381,500
Net income $298,500
Explanation:
Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.
The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.
To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.
Total Asset = $2,407,000 - $25,500 = $2,381,500
Net Income = $324,000 - $25,500 = $298,500
