ABC Theater runs multiple shows each month. Each of the 5 theaters has 100 seats. The selling price for each ticket is $10, no matter which show or time of day. Adults, Seniors and Children admissions are all $10 each.

Given the following financial data:

• ABC Theaters pays $8,000 rent for the theater equipment each month
• ABC Theaters owns the building and records depreciation of $1,500 each month
• The management has determined that there is a variable cost of $2 per admission that accounts for maintenance and supplies.
• The movie house managers salary is $36,000 per year or $3,000 per month. The manager also receives a $1 bonus for each paid admission to the theater
• Finally, the ABC Theaters wants to achieve a $10,000 profit at the end of each month.

* Compute the number of ticket admissions required to be sold each month to achieve break even, including the profit goal of $10,000 each month.

* If ABC Theater had an exceptional month and sold 4,000 tickets at their normal price, how much extra profit would they earn beyond their monthly goal of $10,000; assuming the same data as above?

Information for 22 to 26. In 2012 Norcraft Sisters Construction agreed to construct a residence hall at University of Houston at a price of $1,200,000. The information relating to the costs and billings for this contract is shown below. 2012 2013 2014 Costs incurred during the year $ 280,000 $320,000 $850,000 Estimated costs to complete 520,000 300,000 –0– Customer billings to date 300,000 400,000 850,000 Collection of billings to date 200,000 320,000 800,000

22. Assuming that the percentage-of-completion method is used, compute the amount of gross profit (loss) to be recognized on income statement in 2012 and 2013, respectively

a. $400,000 and 300,000.

b. $140,000 and 60,000.

c. $140,000 and 200,000.

d. $0 and $0.

23. Assuming that the percentage-of-completion method is used, which of the following is reported on the balance sheet at Dec. 31, 2012?

a. Receivable under current assets with a balance of $420,000

b. Net of Construction in Progress and Billings on C.I.P under current assets with a balance of $120,000

c. Billings on C.I.P under current liabilities with a balance of $300,000

d. Construction in Progress under current liabilities with a balance of $280,000

24. Assuming that the percentage-of-completion method is used, what is the amount of Revenue from Long-Term Contracts and Construction Expenses recognized for the year 2013? Revenue Expenses

a. $800,000 $320,000

b. $380,000 $ 320,000

c. $380,000 $ 600,000

d. $800,000 $ 600,000

25. Assuming that the completed contract method is used, compute the amount of gross profit (loss) to be recognized in 2012 and 2013, respectively.

a. $50,000 and 60,000.

b. $0 and 60,000.

c. $50,000 and 300,000.

d. $0 and $0.

26. If in 2013, the estimated cost to complete is estimated to be 400,000, instead of 300,000, compute the gross profit (loss) recognized in 2013 for the percentage-of-completion method and the completed contract method, respectively

a. $(20,000) and 0.

b. $0 and (20,000).

c. $(20,000) and (20,000).

d. $0 and $0.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

Cary Construction Inc. is preparing to bid on a job building a new dorm fo the local college. Cary expects that the job will require $850,000 of direct materials, $500,000 of direct labor, and $425,000 of overhead costs. Administrative and other expenses for the job are expected to be $2,000. On average last year, Cary Construction earned about $250,000 profit on a job this size and would like to increase the profit by 5 percent on new contracts. Cary normally applies a markup on a cost of goods sold to arrive at an initial bid price and then adjusts. the price if necessary in order to meet competitors' prices. The college already has one bid from a national construction company to do the job for $2,000,000.

a.) calculate the markup percentage on the new job.

b.) what is Cary Construction's initial bid?

c.) In light of the competitor's price of $2,000,000, what would you recommend as a bid price for Cary Construction?

Required information
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).

[The following information applies to the questions displayed below.]

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,072,000 $ 2,738,000 $ 2,849,000 Estimated costs to complete as of year-end 5,328,000 2,590,000 0 Billings during the year 2,160,000 2,650,000 5,190,000 Cash collections during the year 1,880,000 2,700,000 5,420,000 Westgate recognizes revenue over time according to percentage of completion. 2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred). 2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred). 2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.)                      
                      
   ADR ($)   Variable Cost ($)              
Standard rooms    394.50   256.43              
Deluxe rooms   631.20   366.10              
                      
                      
The Mock Hotel's fixed costs for a month is = =       252480              
Sales mix (contribution of each room type to total room revenue) of the hotel is:                      
                      
Deluxe rooms   66%                  
Standard rooms    34%                  
                      
Required:                      
Using the information provided above, answer the following questions:                      
a. What is the break-even room nights (number) for the the hotel given the sales mix of the two room packages?                      
b. What must be the room revenue for the hotel to make a profit of $50,000 a month?                      
c. If the hotel is considering an advertisement campaign for its rooms with a cost $5,000, hom much in room revenue should be generated to cover this extra cost?