<span>18750
Explanation: As per Revenue Recognition Principle, one of the principles is the amount of revenue can be reasonably measured, that means the revenue earned should be measurable. Another principle is costs of earning the revenue can be reasonably measured. Therefore, the revenues and costs should both be reasonably measurable. In the above case, both revenue and cost are measurable.
In the above case, the passes are sold in advance because the passes are good for one year, that means the customers paid the money in advance for the whole year on January 1. Advance payments are generally considered as current liabilities in company's balance sheet and the revenue will be recognized with time as the services will be provided.
So, in this case, the total revenue is 75 x 3000 = 225, 000 (whole year),
Per month revenue will be 225,000/12 = 18,750 .</span>
Answer:
the balance in the Work in Process account at the end of September relative to Job A3B is $18,100
Explanation:
Consider all Manufacturing Costs incurred on the Job for September
<u>Calculation of Cost of Manufacturing as at 30 September</u>
Opening Work-In-Process 0
Direct materials $3,400
Direct labor $4,900
Overheads - September ( $4,900× 200%) $9,800
Closing Work - In Process $18,100
Answer:
$76,320
Explanation:
Given that,
sales = $546,000,
costs = $295,000,
depreciation expense = $37,000,
interest expense = $15,000,
Tax rate = 32 percent
Profit before tax:
= Sales - cost - Depreciation - Interest
= $546,000 - $295,000 - $37,000 - $15,000
= $199,000
Profit after tax:
= Profit before tax (1 - Tax rate)
= $199,000 (1 - 0.32)
= $199,000 × 0.68
= $135,320
Therefore, the addition to retained earnings
= Profit after tax - Dividend paid
= $135,320 - $59,000
= $76,320
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