Question
In: Accounting
Wallis Company produces circuit boards in a foreign country that imposes a 15 percent VAT. This...
Wallis Company produces circuit boards in a foreign country that imposes a 15 percent VAT. This year, Wallis manufactured 8.3 million boards at a $5 material cost per unit. Wallis’s labor and overhead added $1 to the cost per unit. Wallis sold the boards to various customers for $7.50 per unit for a net profit of $1.50 per unit. How much VAT does Wallis Company owe?
1867500 is not the answer
Solutions
Expert Solution
VAT is charged on the sales value
From the above
Quantity sold = quantity produced = 8.3 million = 8,300,000
Selling price per unit = $7.50
Total Sales Value= Sales Quantity * Selling price per unit
= 8,300,000 * 7.50
= $ 62,250,000
VAT amount = Sales value * VAT Rate
= $ 62,250,000 * 15%
= $ 9,337,500
ekkarill92 answered 2 years agoRelated Solutions
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