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- Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied Operation $ 35,400 Administration $ 62,400 Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Operation costs Administration costs Operating profit Activity-Based Income Statement Resources Used Unused Resource Capacity…FDN Company had the following transactions during their first year of operations: Purchased goods worth P100,000 on account Paid transportation costs of P10,000 on the purchase above. Returned damaged goods worth P2,000 to the supplier. Sold goods costing P82,000 for P123,000 on account. A customer returned goods with sale price of P9,000 and cost of P6,000. How much is the cost of goods available for sale?
- A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total inventory costs assigned to the used panel if additional costs include ∙ $1,500 for sales staff salaries. ∙ $135 for shipping insurance. ∙ $280 for transportation-in by train. ∙ $550 for used panel restoration. ∙ $110 for online advertising. ∙ $300 for lawn care.Information for number 6 and 7 An offer from the supplier to pay the materials ahead of time is Terms= 3/15, net 30. The materials cost to be purchased amounts $ 50,000. 6. Compute for the cost of the discount 7. If you are the business owner, will you take the discount or pay after the discount?A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include ∙ $250 for transportation-in. ∙ $150 for advertising. ∙ $300 for shipping insurance. ∙ $1,250 for sales staff salaries. ∙ $900 for car import duties. ∙ $180 for trimming shrubs.
- Illustration : Bill and hold and lay away The following are among the transactions of ABC Co. during the year: a. Purchase goods costing P10,000 from XYZ, Inc. Billing was received although delivery was delayed per request of ABC Co. The goods purchased were segregated and ready for delivery on demand b. Purchased goods costing P25,000 from Alpha Corp. on a lay away sale agreement. The goods were not yet delivered until after ABC makes the final payment on the purchase price. ABC Co. made total payments of P10,000 during the year How much of the goods purchased above will be included in ABC's year end inventory?Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,810. The selleragreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight costamounted to $2,840. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $800. The loader operatoris paid an annual salary of $29,210. The cost of the company’s theft insurance policy increased by $2,180 per year as a result ofacquiring the loader. The loader had a four-year useful life and an expected salvage value of $13,500.Requireda. Determine the amount to be capitalized in an asset account for the purchase of the loader.b. Record the purchase in general journal format. Required A Required B Complete this question by entering your answers in the tabs below.A VAT-registered realty dealer sold a parking lot at the following terms: Zonal value P 2,000,000 Less: 10% discount 200,000 Selling Price 1,800,000 Compute the Output VAT a. PO b. P 168,000 c. P 216,000 d. P 240,000 O a. Po O b. P 168,000 O c. P 216,000 O d. P 240,000
- Direction : Read and analyze the given situation below and write the answers for each question on your answer sheet. Don’t forget your solution. • The Excelsior Merchandising purchased merchandise costing P250,000.00 for the month of October. It paid P10,000 for freight (transportation) for the shipment of the goods from the seller to its store. It insured the merchandise for P25,000. It sold the merchandise for P420,000. For the current month, it incurred the following expenses: Delivery Expense P15,000 Salary Expense P30,000 Miscellaneous Expense P25,000 Utilities Expense P10,000 The firm earned interest on the promissory notes of its customer amounting to P12,000. It paid interest to the bank on a loan it took amounting to P8,000 1. Compute for the following: a. Cost of sales b. Gross profit c. Operating Expenses d. Operating Profit/Loss e. Other Income f. Other Expense g. Net Profit/Lossfollowing balances in its unadjusted trial balance at December 1. $ 9,400 1,980 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable 500 540 640 90 1,400 300 5,900 2,700 15,560 8,810 066 1,800 90 Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Expense Income Tax Expense Office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. < Prev 2 of 2 NextEconomics A businesa man made an article and sold it to a wholesaler at a profit of 20%. The wholesaler again sold the article at a profit. The retailer lastly sold it to customer at a profit (A). If the cost of business $500 to make the article, find how much the customer paid for it. (B). A customer paid for another article. Determine how much the wholesaler had paid for it. (C). During a clearance sale the retailer reduced his prices by 10%. Find the percentage profit the retailer made on an article which had cost the business man $ 2000 to make. Thank. You