Answer:
2016: $300 million; 40%; $60 million
2017: $450 million; 60%; $90 million
Explanation:
Total costs:
= Costs incurred in 2016 + Costs incurred in 2017
= $240 + $360
= $600
In 2016:
Percent of total excepted costs:
= Costs incurred in 2016 ÷ Total costs
= $240 ÷ $600
= 0.4 or 40%
Revenue recognized:
= Percent of total excepted cost × Contract price
= 0.4 × $750 million
= $300 million
Income = Revenue recognized - Costs incurred in 2016
= $300 million - $240 million
= $60 million
In 2017:
Percent of total excepted costs:
= Costs incurred in 2017 ÷ Total costs
= $360 ÷ $600
= 0.6 or 60%
Revenue recognized:
= Percent of total excepted cost × Contract price
= 0.6 × $750 million
= $450 million
Income = Revenue recognized - Costs incurred in 2017
= $450 million - $360 million
= $90 million
Answer:
You pay taxes upfront
the maximum contribution is low
Explanation:
UTP quiz
Answer:
The bond interest expense to be shown in profit or loss as t 30 June 2021
$9,838.56
Explanation:
The bond interest expense is the actual finance cost of using the funds made available by bondholders while the coupon payment is the portion of the finance cost paid to them periodically.
Interest expense=bonds cash proceeds*yield to maturity*6/12
bonds cash proceeds is $163,976
yield to maturity is 12%
interest expense=$163,976*12%*6/12=$9,838.56
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Answer:
Explanation:
For passing the journal entry, first, we have to compute the predetermined overhead rate to know that whether the overhead is under applied or over applied.
Predetermine overhead rate = Estimated overhead cost ÷ direct labor cost
= $118,500 ÷ $125,600
=0.94
Now, we can compute the under applied or over applied overhead which is shown below:
= Actual direct labor cost × Pre determined overhead rate - actual overhead
= $115,800 × 0.94 - $108,000
= $108,852 - $108,000
= $852
Since the amount is in positive, so it is over applied overhead and the journal entry is given below:
Manufacturing overhead A/c Dr $852
To Cost of goods sold $852
(Being over applied overhead closed)
