I need the answer as soon as possible Question 3Penny's Construction has been contracted to build a small indoor skate park. The contract was signed inNovember and construction began in December. The total price for the contract is $12 million. The jobwas complete December 203. Penny has a December 31 year end.20X120X220X3$ 1,400,0007,600,0001,000,000800,000$ 5,600,0007,000,0005,200,0003,000,000Accumulated costs to date$ 12,500,000Estimated costs to complete projectCustomer billings to date12,000,00010,500,000Cash collected to dateRequired:a) Calculate the amount of gross profit to be recognized each year using the percentage-of-completion method.b) Show how the details of this contract would be disclosed on the Statement of Financial Positionand Statement of Financial Performance in 20X2.

The percentage of completion method is an accounting method in which the revenues and expenses of…

Question 3 Penny's Construction has been contracted to build a small indoor skate park. The contract was signed in November and construction began in December. The total price for the contract is $12 million. The job was complete December 20X3. Penny has a December 31 year end. 20X1 20X2 20X3 $ 5,600,000 7,000,000 5,200,000 3,000,000 $ 12,500,000 $ 1,400,000 7,600,000 1,000,000 800,000 Accumulated costs to date Estimated costs to complete project Customer billings to date 12,000,000 10,500,000 Cash collected to date Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Show how the details of this contract would be disclosed on the Statement of Financial Position and Statement of Financial Performance in 20X2.

Question 3 Penny's Construction has been contracted to build a small indoor skate park. The contract was signed in November and construction began in December. The total price for the contract is $12 million. The job was complete December 20X3. Penny has a December 31 year end. 20X1 20X2 20X3 $ 5,600,000 7,000,000 5,200,000 3,000,000 $ 12,500,000 $ 1,400,000 7,600,000 1,000,000 800,000 Accumulated costs to date Estimated costs to complete project Customer billings to date 12,000,000 10,500,000 Cash collected to date Required: a) Calculate the amount of gross profit to be recognized each year using the percentage-of- completion method. b) Show how the details of this contract would be disclosed on the Statement of Financial Position and Statement of Financial Performance in 20X2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required Exhibit 13.4 in the chapter as your guide. E13-4 Time allowed: 10 minutes cover a relevant range of 15,000 to 25.000 machine-hours each year. Overhead costs Cost formula Utilities £0.30 per machine-hour Indirect labour £52,000 plus £1.40 per machine-hour Supplies £0.20 per machine-hour Maintenance £18,000 plus £0.10 per machine-hour Depreciation 000'obF Required Prepare a flexible budget in increments of 5,000 machine-hours. Include all costs in your budget. E13-5 Time allowed: 20 minutes The variable portion of Murray Company's flexible budget for manufacturing overhead is given below: Machine-hours Cost formula 000 £2,800 Variable overhead costs (per machine-hour) £0.20 £2,400 Supplies 000 11,200 Maintenance 009'b 000' 1,200 1,400 Utilities 0.10 000 0 00 £21,000 0.40 4,800 Rework time 000 0 £1.50 £15,000 £18,000 Total variable overhead cost During a recent period, the company recorded 11,500 machine-hours of activity. The variable overhead costs incurred were: Supplies…
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answer in 20 minutes Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit product cost for this bracelet is $274.00 as shown below: Direct materials $ 148Direct labor 90Manufacturing overhead 36Unit product cost $ 274 The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $13. Imperial Jewelers would also have to buy a special tool for $456 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period.…
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Answer and solution pls Motor Company manufactures 10,000 units of Part M-l each year for use in its production. The following total costswere reported last year:Direct materials P 20,000Direct labor 55,000Variable manufacturing overhead 45,000Fixed manufacturing overhead 70,000Total manufacturing cost P190,000Valve Company has offered to sell Motor 10,000 units of Part M-l for P18 per unit. If Motor accepts the offer,some of the facilities presently used to manufacture Part M-l could be rented to a third party at an annual rental ofP15,000. Additionally, P4 per unit of the fixed overhead applied to Part M-l would be totally eliminated. ShouldMotor Company accept Valve Company's offer, and why?a. No, because it would be P5,000 cheaper to make the part.b. Yes, because it would be P10,000 cheaper to buy the part.c. No, because it would be P15,000 cheaper to make the part.d. Yes, because it would be P25,000 cheaper to buy the part.
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1- Chapters 1,2, & 4 35 #t 3 Peterson Company budgets overhead cost of $4,440,000 for the next year. The company uses machine hours as its overhead allocation base. If 100,000 machine hours are planned for the next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.) * E D C Multiple Choice O O $ $0.03 per machine hour. $44.40 per machine hour. $34.62 per machine hour. $9.40 per machine hour. $0.11 per machine hour. 101 R % V 5 T ^ 40 6 Y & CH- 7 < Prev Q Search U F G H J CH + 8 00 Saved B N M 30 of 39 1- fg T 144 ( S K f10 O Next Pll ) O P 112 { + [ prt sc ← ] Help delete backspace Ext Cate Save & ho
PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 20x2 Total costs incurred to date 1,600,000 6,000,000 Estimated costs to complete 6,400,000 1,500,000 How much revenue is recognized in 20x2? 8M 6M 4M What is the percentage of the progress completed in 20x2? 80% 60% 40% 16%
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