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 | $ | 2,490,000 | $ | 3,984,000 | $ | 2,008,600 | |||
| Estimated costs to complete as of year-end | 5,810,000 | 1,826,000 | 0 | ||||||
| Billings during the year | 2,030,000 | 4,444,000 | 3,526,000 | ||||||
| Cash collections during the year | 1,815,000 | 3,900,000 | 4,285,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
5. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete information.
(Do not round intermediate calculations and round your
final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.)
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,490,000 | $ | 3,815,000 | $ | 3,945,000 | |||
| Estimated costs to complete as of year-end | 5,810,000 | 4,130,000 | 0 | ||||||
In: Accounting
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 | $ | 2,490,000 | $ | 3,984,000 | $ | 2,008,600 | |||
| Estimated costs to complete as of year-end | 5,810,000 | 1,826,000 | 0 | ||||||
| Billings during the year | 2,030,000 | 4,444,000 | 3,526,000 | ||||||
| Cash collections during the year | 1,815,000 | 3,900,000 | 4,285,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
4. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete information.
(Do not round intermediate calculations and round your
final answers to the nearest whole dollar amount. Loss amounts
should be indicated with a minus sign.)
| 2021 | 2022 | 2023 | |||||||
| Costs incurred during the year | $ | 2,490,000 | $ | 3,815,000 | $ | 3,215,000 | |||
| Estimated costs to complete as of year-end | 5,810,000 | 3,115,000 | 0 | ||||||
In: Accounting
Differential Analysis Report for a Discontinued Product
The condensed product-line income statement for Porcelain Tableware Company is as follows:
|
PORCELAIN TABLEWARE COMPANY Product-Line Income Statement |
||||||||
| Bowls | Plates | Cups | ||||||
| Sales | $658,000 | $903,000 | $272,000 | |||||
| Cost of goods sold | (271,000) | (335,000) | (154,000) | |||||
| Gross profit | $387,000 | $568,000 | $118,000 | |||||
| Selling and administrative expenses | (289,000) | (344,000) | (144,000) | |||||
| Operating income (loss) | $98,000 | $224,000 | $(26,000) | |||||
Fixed costs are 42% of the cost of goods sold and 16% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued.
a. Prepare a differential analysis report for all three products.
| PORCELAIN TABLEWARE COMPANY | |||
| Product Income | |||
| Differential Analysis Report | |||
| Bowls | Plates | Cups | |
| Differential revenue from monthly sales: | |||
| Revenue from sales | $ | $ | $ |
| Differential costs of monthly sales: | |||
| Variable cost of goods sold | $ | $ | $ |
| Variable selling and administrative expenses | |||
| $ | $ | $ | |
| Monthly differential income from sales | $ | $ | $ |
In: Accounting
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:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,580,000 | $ | 4,042,000 | $ | 2,175,800 | |||
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 | ||||||
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 | ||||||
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,580,000 | $ | 3,830,000 | $ | 3,230,000 | |||
| Estimated costs to complete as of year-end | 6,020,000 | 3,130,000 | 0 | ||||||
In: Accounting
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:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,580,000 | $ | 4,042,000 | $ | 2,175,800 | |||
| Estimated costs to complete as of year-end | 6,020,000 | 1,978,000 | 0 | ||||||
| Billings during the year | 2,060,000 | 4,562,000 | 3,378,000 | ||||||
| Cash collections during the year | 1,830,000 | 4,200,000 | 3,970,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,580,000 | $ | 3,830,000 | $ | 3,230,000 | |||
| Estimated costs to complete as of year-end | 6,020,000 | 3,130,000 | 0 | ||||||
In: Accounting
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: 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,990,000 Estimated costs to complete as of year-end 6,020,000 4,160,000 0
In: Accounting
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: 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0
In: Accounting
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: 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 3,830,000 $ 3,230,000 Estimated costs to complete as of year-end 6,020,000 3,130,000 0
In: Accounting
The sales of certain products in three cities are given in the 4 by 3 matrix below. City 1 City 2 City 3
Tablets 61 68 37
Laptop Computers 51 66 39
Cell Phones 58 77 65
Personal DVR 38 76 40
The cost of the items depend if they were sold "Retail" or "Wholesale". The Retail costs were: $182 for tablets, $301 for laptops, $434 for cell phones, and $1,657 for DVRs. The Wholesale costs were: $349 for tablets, $425 for laptops, $161 for cell phones, and $1,657 for DVRs. To get the total revenue at each city for Retail and Wholesale, we would need to put the information above (on retail and wholesale costs) into a matrix that has rows and columns and multiply it by the 4 by 3 matrix on sales at each city for each item. After multiplying these two matrices, we would have a matrix that has rows and columns. The total wholesale revenue from city 2 would be in row and column
In: Economics
How many units would I need to sell to make a 30% profit for year 2 and a 40% profit for year three
Year 1 year 2 year 3
Sales Units 2500 2750 2900
sales Price Unit $150.00 $150.00 $150.00
REVENUE $375,000 $412,500 $435,000
Variable Costs:
Direct Materials $20.00 $20.50 $26.01
Direct Labor $17.15 $17.60 $19.22
Variable OH $2.50 $2.53 $2.55
Fixed Costs:
Rent 80,000 $80,000 $80,000
Supervision 200,000 $205,000 $210,250
Mixed Costs:
Utilites-Fixed 20,000 20,000 20,000
Utilities-Variable $2.50 $2.50 $2.50
Total Costs:
Variable cost per unit $42.15 $43.13 $50.28
Fixed Costs $300,000 $305,000 $310,250
Contribution Margin $107.85 $106.87 $99.72
72% 71% 150%
Breakeven:
Sales Units $2,781.64 $2,853.93 $3,111.21
Sales Revenue 375,000 412,500 435,000
Margin of Safety: $0 $0 $0
In: Accounting