PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contractprice is P10M. Information on costs is as follows:20x11,600,000 6,000,00020x2Total costs incurred to dateEstimated costs to complete6,400,000 1,500,000How much revenue is recognized in 20x2? A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Theirtransactions during the two-month period are summarized below:Joint operation8,500 Nov. 15 Cash sales-CNov. 5 Merchandise-A20,40012 Merchandise-B7,00018 Cash sales-C4,20014 Freight-in-CDec. 10 Purchases-C20030 Merchandise-B1,2103,500 Dec. 25 Unsold mdse. charged to A54022 Selling expenses-C550The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of2:3:5. The joint operation is to close on December 31, 2008.What is the amount of cash that A will receive on final settlement?

“Since you have asked multiple question, we will solve the first question for you. If you want any…

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The transaction price allocated to the pool and the installation is

A: The transaction price represents the amount of consideration a seller expects to receive from a…

Q: Red Company allocates research and development costs to its three research facilities based on each…

A: Total Research & Development cost = $40,000,000 Total revenue = $250,000,000 Allocation rate =…

Q: Han products manufacturing 40,000 units of part S-9 each year for use of its production line. A this…

A: Business entity after analyzing the cost structure decide whether it is profitable to manufacture…

Q: Considering the reciprocal services method, what are the equations that represent the algebraic…

A: Solution:- Calculation of equations represents the algebraic expressions for the two equations…

Q: oint casts: Direct materials: 51000 Direct labor: 61000 Overhead: 66000 Revenues: Product A: 76500…

A: Effect on profit if A processed further Formula: = Additional Revenue from further processing A -…

Q: How much is the net income attributable to Product M, assuming that joint costs are allocated using…

A: Particulars Products M N Q Total Sales Value P1,715,000 M (350 * 2400) P840,000…

Q: Magic Realm, Incorporated, developed a new fantasy board game and sold 38,800 units last year at a…

A: Contribution: The number of profits that are left over after all direct expenditures have been…

Q: +21. Lakas Engine Co. manufactures engines for the military equipment on a cost-plus basis. The cost…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: The Lombard Company produces and sells office-space dehumidifiers to companies that own or rent…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost…

A: Conversion costs are those costs incurred to convert raw materials into finished goods. Conversion…

Q: Cepantas Sdn Bhd is in the courier business. It owns an office building and 200 motorcycles to…

A: As per MFRS the tangible assets is recognized at fair value that is determined by their best…

Q: rs, and the cost of maintenance and labor wages is (75) dinars, including the cost of raw materials…

A: Given: The total price for purchasing a concrete block making plant is (10) million Iraqi dinars.…

Q: If the imputed charge is charge is 15% and Webb wants to achieve a residu target of P2,000,000, what…

A: Introduction:- The following formulas used to calculate as follows under:- Residual income = Net…

Q: E5.2 (LO 1), AP Shingle Enterprises is considering manufacturing a new product. It projects the cost…

A: The direct materials cost will be variable and will increase as the output increases. Rent cost is…

Q: Required: Use the 5-step model to analyse the problem and give all entries required from date of…

A: Given in the question: Franchise Contract Date March 1, 2019 Non-Refundable…

Q: 13-9. (Using break-even analysis) (Related to Checkpoint 13.4 on page 457) Accounting Break-Even…

A: Break even analysis is the analysis of how the fixed and variable cost affect the firms profit.…

Q: Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the…

A: Given in the question 2023 2024 2025 Costs incurred to date $920,625…

Q: Thomas's contract specifies that it will receive a flat fee of $50,000 and an additional $20,000 if…

A: In order to reduce the cost and increase the profit percentage the business entities adopt the cost…

Q: Mahindra Company transfers a product from division K to division J. Variable cost of this product is…

A: Transfer price = Actual variable cost + (130% on variable cost)

Q: Worf Co. both purchases and constructs various equipment it uses in its operations. The following…

A: We are given the list of items to calculate the purchase cost of equipment and to calculate…

Q: The selling price of a component is 1.3 Riyal with a material cost of 0.6 Riyal. The cost of the…

A: Breakeven quantity=Fixed costContribution per unit

Q: M Construction Sdn Bhd is considering investing in a new construction equipment costing RM150,000.…

A: Net present value is the difference between the present value of cash flow and initial investment.…

Q: Eastside Company incurs a total cost of $120,000 in producing 10,000 units of a component needed in…

A: GIVEN Fixed cost is 25% of variable cost Fixed cost = 0.25 variable cost Variable cost + fixed cost…

Q: Coronado Industries incurred the following costs to produce 100000 units: Variable costs $690000…

A: Let us assume Total cost incurred if we purchase from outside supplier = C

Q: pany transfe Variable cost of this product is anticipated to be P40 a unit and total fixed costs…

A: The costs incurred in the production are classified as variable cost and fixed cost. The variable…

Q: P3. (make or buy) Sam Company incurs the following costs in producing 10,000 covers. $20,000 Direct…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 8. If the direct labour cost for company A is £15,000, direct material cost is £26,000, factory rent…

A: Formula: Conversion cost = Direct labor cost + Factory overhead

Q: A company Is considering a new project that will cost $19,000. This project would result In…

A: $19,000 is a cost that will only increase or incurred if the new project is undertaken.

Q: Company E has two divisions, Division A and Division B. Division A is currently buying Component X…

A: Transfer pricing refers to the price paid for goods transferred from one unit to another unit or…

Q: D6 2. At a production level of 5 600 units a project has total costs of R89 000. The variable cost…

A: Fixed costs are those costs which remain the same throughout the period at any activity level.…

Q: The TSLA Corporation currently uses a manufacturing facility costing $400,000 per year; 80% of the…

A: Allocated costs :— It is calculated by multiplying common costs with allocation percentage.…

Q: Ex4: H.W2 Calculate the selling price of one pencil of the following data using UCC method: No. of…

A: Variable cost: It is the cost that changes with the change in level of units produced. It includes…

Q: ABC Company uses a joint process to produce products A, B, and C. The joint production costs for…

A: Given joint costs = 500,000 These joint costs should be allocated to products based on their sales…

Q: am. 115.

A: The objective of this question is to calculate the profit recognized in Year 1 using the…

Q: Bridgeport Inc., a private company that applies ASPE, incurred $15,900 in materials and $11,600 in…

A: Account titles and explanationDebitCreditResearch and Development…

Q: 13.556, a software developer incurs Distribution Expenses (20% fixed) t2.50 per Software package.…

A: SPSS incurs a Distribution Expenses of Rs.2.5 per Software Package20% is fixedPresently it is…

Q: Kilos Cost 80,000.00 160,000.00 60,000.00 132,000.00 What is the estimated cost of handling 75,000…

A: The high low method can be used to separate the fixed and variable cost from the mixed cost and…

Q: The following data are available for two mutually exclusive projects: Project A $16,900,000…

A: Since you have posted a question with multiple sub parts, we will provide the solution…

Q: Morton Company's contribution format income statement for last month is given below: Sales (46,000…

A: Cost-Volume-Profit (CVP) analysis is a method used in managerial accounting to understand the…

Q: A project has a unit price of $5,000, a variable cost per unit of $4,000, fixed costs of…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: The joint costs allocated to product Y were

A: Joint costs are those costs which are incurred for producing two or more than two products at the…

Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical…

A: Solution The relevant cost are those which cost which increases / decreases the total cost of…

Q: How much is the net income attributable to Product M, assuming that joint costs are allocated using…

A: Allocated joint cost NRV method used so formula is= sales price -further processing cost -disposal…

Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

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
1,600,000 6,000,000
20x2
Total costs incurred to date
Estimated costs to complete
6,400,000 1,500,000
How much revenue is recognized in 20x2?

A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Their
transactions during the two-month period are summarized below:
Joint operation
8,500 Nov. 15 Cash sales-C
Nov. 5 Merchandise-A
20,400
12 Merchandise-B
7,000
18 Cash sales-C
4,200
14 Freight-in-C
Dec. 10 Purchases-C
200
30 Merchandise-B
1,210
3,500 Dec. 25 Unsold mdse. charged to A
540
22 Selling expenses-C
550
The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of
2:3:5. The joint operation is to close on December 31, 2008.
What is the amount of cash that A will receive on final settlement?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

XY2 Company uses the high low method to analyze the mixed cost. According to the cost formula derived the total land ct $10.000 Total cost at the high level of activity was $76,000 and at the low level of activity was S25,000. If the low levet of acty 2500 units, what was the high level of activity in units? Select one Da 12.000 Ob7600 C None of the answers gven Co11500
answer with correct option
H1.
Please do not give solution in image format
The total price for purchasing a concrete block making plant is (10) million Iraqi dinars. The price of one in the market is (100) Iraqi dinars, and the cost of maintenance and labor wages is (75) dinars, including the cost of raw materials per block, find with the detailed explanation: 1_ In which unit can we find the break-even point (BEP) 2- If an operating advance is withdrawn in The starting point is (2) million dinars. In any construction unit, the break- even point could be. 3- If the variable values after the unit (2 50,000) change by 10%, when will the break-even point occur if the annual production is (290000) concrete bIocks.I
The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the machine used to manufacture the component is15000 Riyals. The present production volume is 22000 units. Determine the breakeven quantity, if the cost of the component is 1.5 Riyal from outside supplier. Due to modification in the component design, the material cost is reduced to 0.70 riyal with additional machine cost of 4000 Riyals and increased production quantity to 30000. Guide the manger to select appropriate product for maximum profit based on profit, break-even analysis and justify the selection
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 $ 77,772,800 $ 240,720,000 revenue Research & $ 60,360,000 Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be: Multiple Choice $24,072,000. $15,693,600. $244,504,000. $9,018,000. $18,036,000.
PIz-3 Renton Corporation incurred total joint cost of P150.000 to manufacture three joint products, R, E ,and N. These products were further processed for an additional cost of P230,000 and then sold for P410,000 as follows: Additional Processing Costs (all variable) P100,000 80,000 50,000 P230,000 Product Sales P200,000 120,000 90,000 P410,000 N Renton received an offer to sell the products to other processors at split-off. If the offer was accepted, sales would have been: R, P110,000; E, P20,000; and N, P35,000. Rentòn forecasts the same production and sales level. Required: Did the net income increase as a result of processing the products further? How much is the overall net income? а. b. Which of the three products should be sold at split-off point? Which should be processed further? RE
A contractor is assembling a bid for a lump-sum building project. The summation of all task costs is $15,000,000. Annual company revenue is $400 million, and annual home office costs are $25 million. Total job office overhead is estimated to be $3 million and desired profit is 11%. Include O&P, what lump-sum price should the contractor bid?
Kk.207.
Show the solution in good accounting form
18. Questions 18 and 19 are based on the following information: Regine Company manufactures plugs used in its manufacturing cycle at a cost of Ph 36 per unit that includes Ph 8 of fixed overhead. Regine needs 30,000 of these plugs annually and Orlan Company has offered to sell these units to Regine at Ph 33 per unit. If Regine decides to purchase the plugs, Ph 60,000 of the annual fixed overhead applied will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. If Regine Company purchases the plugs but does not rent the unused facility, the company would * save Ph 3.00 per unit lose Ph 6.00 per unit save Ph 2.00 per unit lose Ph 3.00 per unit O O