Howw much are the contract costs incurred in 20x2?
Q: The contract rate is above the market rate. The contract rate is equal to the market rate.
A: The correct answer is option (a) The contract rate is above the market rate.
Q: What is equivalent annual annuity (EAA) method?
A: Equivalent annual annuity (EAA): Equivalent annual annuity measures the annual payments a scheme…
Q: In 150 words or fewer, explain how contingent liabilities are accounted for.
A: Contingent Liability: Contingent liability refers to any potential liability that can occur…
Q: LC8Q3.Which of the following is a variable cost? Loan interest rate Salary Rent Salesperson s…
A: A variable cost is a type of cost which changes in accordance to the change in the level of output.
Q: mber 31, 20x1. contract revenue will Krabs recognize in 20x1? c. 80,747 d. 0 a. 60,747 b. 79,132 TI
A: Contract revenue recognition is a generally accepted accounting principle (GAAP) that helps in…
Q: What factors must any company consider before accepting a special-order contract?
A: Company has to consider following points while accepting special order: 1. Potential effect on sale…
Q: Cost recovery can be .18 related to capital maintenance
A: Cost recovery can be related to capital maintenance. Because both cost recovery and capital…
Q: Which of the following statements about forms of variable pay are true? Group of answer choices A…
A: Variable pay refers to the sales remuneration portion which is dependent through job performance. It…
Q: uivalent annual cost is determined to be -$
A: Equivalent annual cost (EAC) is a method used to calculate the yearly cost of several options,…
Q: If
A: n(A) = 150n (B) = 150 (A ∪ B) = 210
Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…
A: The percentage of completion method is an accounting technique in which long-term deed income and…
Q: Would a $1,000 expenditure be considered material to allbusinesses? Explain.
A:
Q: which P Co. would obtain a “bargain." O $710,000
A: Fair Value -: In capitalizing, Fair Value is a source to the asset's fee, as inferred by an inclined…
Q: Which mutually exclusive project below would you recommend?
A: The internal rate of return (IRR) is the rate of return where Net present value of the project is…
Q: Which of the following isa type of "Maximum Efficient Contract"? O Term Insurance that has a 20 yr…
A: Maximum Efficient Contract suggests that the party in the contract should benefit the most from such…
Q: ced quantity and realized price in a duopoly with firms A and B that is characteriz
A: Given a demand function P= 140-Q where Q= Q1+ Q2 MC=$ 20
Q: What are the two types of losses that can become evidentin accounting for long-term contracts? What…
A: The two types of losses that can become evident while accounting for long-term contracts are:(1) A…
Q: 15)The Bid Bond is: a. Paid to the contractor for mobilization purposes. b. Paid to buy contract…
A: Bid bond is used for various projects such as constructions jobs, etc. these bonds helps to provide…
Q: What is a 12% commission on a $2.5M contract?
A: Commission = 12% Contract value = $2.5 million
Q: How much profit is recognized from the contract in 20x1?
A:
Q: The forward contract price, established when the contract is initiated at t = 0, is denoted as…
A: Forward Price: It refers to the contract price of an underlying financial asset or commodity that is…
Q: e total cost of manu ation p(x) of C(x) a e this with the exact n(x) about n(x 20
A: We will use linear approximation of a function let y = f(x) is the function to find local linear…
Q: What two types of transactions make up the largest percent of current liability
A: Current Liabilities are those liabilities which are to be paid in short period of time or within a…
Q: How much is the equivalent annual cost of Model X?
A:
Q: How much is the contract asset (liability) as of December 31, 2022 using View 1 of the PIC?
A: Contract asset: Contract asset is a right received the consideration for services rendered by a…
Q: Complete the table using the information provided and assume a VAT rate of 15%: VAT EXCLUSIVE…
A: The VAT is the value added tax collected by sellers from the customer and is paid to government.
Q: What is the EOQ for this component? b. What is the reorder point? c. What is the cycle time?
A: I am answering the first three sub-parts of the question as per bartleby policies. Please re-submit…
Q: 1. What is the net income for 2019 and 2020 under the Variable Costing Method? 2. What is the net…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Find the percent markup based on selling price, if the percent markup based on the cost is 18%.
A: Solution... Markup on cost = 18% Markup on sales = ?
Q: Define the term Annual operating cost:?
A: MEANING OF OPERATING COST The sum total of operating expenses and cost of goods sold is called…
Q: if dollar markup is $5.60 and percent markup is 101.82% on cost, what is cost and selling price?
A: Given that: Dollar markup = $5.60 Percent markup on cost = 101.82%
Q: Describe the types of Musharakah contracts and give ONE (1) example for each type.
A: Musharakah contracts: Musharakah is a joint partnership arrangement in Islamic finance in which…
Q: What is the present worth of a uniform series payment?
A: The present worth is the value of an asset at present considering an assumed discount rate, which…
Q: How would an annual bonus paid at year-end be treated under IAS 34 and how does this treatment…
A: Under IAS 34 year-end bonus varies in a wide range. Some of them are regularly earned in the…
Q: Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the…
A: Revenue recognizes steps: Identify the contract with a customer Identify the performance…
Q: e contract revenue yo da
A: The percentage of completion method is a method of recognizing revenue of long-term contract or…
Q: on your answer in the previous requirement, provide and justify a proper transfer price. (130 words)
A: Cost per Tires Direct Material Cost $ 95 Direct Labour Cost $ 54…
Q: What is the net income for 2019 under Variable Costing
A: Solution : Calculation of net income under variable costing for 2019 Sales P260000…
Q: Iministrative expense the contribution app ata, the "floor" and th spectively: P20 and P35
A: In contribution…
Q: What amount of RGP should be reported for the current year if the percentage of completion method is…
A: Answered:
Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…
A: The percentage of completion method is an accounting technique in which long-term deed income and…
Q: required: (d) What is the new Residual income if Proposal 1 is selected? (e) What is the new…
A: The residual income can be defined as the income earned over and above the opportunity cost of the…
Q: on the date of expiry, the price of an expiring forward or future contract must be equal to the spot…
A: Convergence means the movement of the future price of the contract towards the spot price of the…
Q: Using the following data, what would the transfer price per unit if Division A purchased Component X…
A: As per market based tranfer pricing, purchasing division will pay the market price at which it can…
Q: 1) Percentage of Completion is favored to be used under the following circumstances, except A.…
A: We will answer the first question since the exact one is not specified. Please submit new question…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- M. 00 00 at f. Use the following information for the next two questions: Co. appropriately uses the cost-to-cost method in measuring construction contract with a customer. Information on this contract, which was completed in 20x3, is shown below: Bass its progress on a Transaction price Profit each year Costs incurred each year (AICPA -Adapted) 20x1 20,000,000 400,000 3,600,000 a. 5,400,000 b. 6,800,000 20x2 20,000,000 1,400,000 ? 10. How much are the contract costs incurred in 20x2? a. 5,800,000 c. 6,600,000 b. 6,200,000 d. 10,200,000 How much are the estimated additional costs to complete as of December 31, 20x2? 20x3 20,000,000 (200,000) 8,200,000 c. 7,200,000 d. 8,600,000Assume the same facts as in E17-19, except that Rix cannot directly observe the stand-alone selling prices of the installation and service contracts. However, Rix has determined that the cost of the installation services is 150 and historical margins relative to cost average 20%. Therefore, Rix estimates the stand-alone selling price of the installation services using an expected cost plus a margin approach. Rix decides to use an adjusted market assessment approach to estimate the selling price of the service contract. Rased on information obtained from competitors, Rix determines the average selling price of a similar service contract to be 350. Rix believes that it has a higher cost structure than its competitors and that it should increase this estimate by 10% to achieve an acceptable margin. Required: 1. Determine the stand-alone selling price of each good or service. 2. How should the transaction price be allocated among the products? (Round your answer to the nearest dollar.)19) Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $370,000. Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the expected-cost-plus-a-profit margin approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) Product X Y Z A) $159,390 B) $94,868 C) $123,333 D) $185,000 Standalone Price $150,000 $110,000 Not Available Market Price Forecasted Cost $130,000 $100,000 $160,000 $85,000 $100,000 $140,000
- Use the following information for the next three questions: In 20x1, Friedland Co. entered into a contract with a customer for the construction of a building. The contract price is a fixed fee of P12,000,000. Information on the contract is shown below: 20x1 20x2 Costs incurred per year Estimated costs to complete 3,920,000 5,080,000 5,880,000 1,000,000Nance Network Consultants, Incorporated uses the percentage-of-completion method to account for its long-term contracts. It uses the cost-to-cost approach to measure progress. During the current year, Nance signed a contract to develop a computer network for an international accounting firm. Information related to the contract follows. DELIVERABLES Compute the percentage-of-completion for each year. Compute the gross profit and revenue to be recognized each year of the contract. Prepare the journal entries required for each year of the contract. Prepare the t-accounts for construction in progress, billings on construction in progress, and accounts receivable. Determine the net asset (liability) for each year of the contract on December 31. Contract Price 800,000Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 O $991000 O $247750 O $275000 O $0 6011000 1811000 1536000 In the first year, Crane should recognize gross profit of Crane Corporation uses the co information is available: Costs to date: Estimated costs to complete Progress billings during the y Cash collected during the yea In the first voor Crano should r Snipping Tool Screenshot copied t Select here to mark
- Duke Ltd has a contract with a customer ongoing at the end of the financial year, 31 December 2020. Details of this contract are as follows:Total contract price £50,000Cost incurred to date £12,000Anticipated future costs £28,000Progress billing - Agreed price for the component completed £14,000Progress is measured using the output method under IFRS 15 Revenue from Contracts with Customers.What amount of revenue is able to be recognised for the year ended 31December 2020?a) £15,000b) £50,000c) £21,000d) £14,000The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000Widjaja Company is accounting for a long-term construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Instructions a. What theoretical justification is there for Widjaja Company's use of the percentage-of-completion method? b. How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements. c. How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion? d. What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.
- HELP MEIn 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.7. Realized gross profit in 20x2 _____________8. The balance of "Contract Liability" at the end of 20x2 _____________9. Revenue that should be recognized in 20x3 _____________10. Realized gross profit in 20x3In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, compute the following: Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.4. Balance of "Contract Liability" at the end of 20x1 _____________5. Percentage of completion for 20x2 _____________6. Revenue that should be recognized in 20x2 _____________