Answer the following multiple questions.

1. We Build It Corp. (WBIC) is a general contractor that specializes in constructing apartment buildings. WBIC is a publicly accountable enterprise and its year end is December 31. During 20X4, WBIC contracted with Apartment Rentals Inc. (ARI) to construct a single apartment building at a fixed price of $20 million. WBIC determined that this contract represents a single performance obligation satisfied over time. The company only prepares adjusting entries and accruals at year end.

Other pertinent information follows:

*The revised cost data was not known in 20X4.

**n The revised cost data was not known in 20X4 or 20X5.

*** The revised cost data was not known in 20X4, 20X5 or 20X6.

Assume that WBIC uses the cost-to-cost method to estimate its progress to completion. What was the total cost of sales expense On '000s) recognized by WBIC in 20X6? Round all percentages to one decimal place (for example, 45.2%).

(a) $6,000

(b) $6,200

(c) $7,000

(d) $17,000

Use the following information to answer questions 2 and 3.

Let It Snow Corp. (LSC) is a retailer of ski and snowboard equipment. You have been asked to estimate the company's closing inventory at April 30, 20X9, to validate the accuracy of the year-end inventory count. Pertinent details for fiscal 20X9 follow:

• Historically, LSC has averaged a 64.50% gross margin.
• LSC rounds all percentages to two decimal places (for example, 31.47%).

2. Assume that LSC uses the retail method to estimate its closing inventory. Based on this estimate, what value will LSC report for inventory on its statement of financial position as at April 30, 20X9?

(a) $287,027

(b) $291,459

(C) $299,548

(d) $554,000

3. Assume that LSC uses the gross profit method to estimate its closing inventory. Based on this estimate, what amount will LSC report as cost of goods sold expense on its statement of comprehensive income for the year ended April 30, 20X9?

(a) $422.450

(b) $584.685

(c) $598,175

(d) $605.315

4. Mega Retailer Inc. (MRI) is a retailer of children's toys. Select transaction data pertaining to its inventory holdings in August 20X3 follow:

• MRI uses the weighted average cost flow assumption to account for its inventory.
• MRI rounds all calculations to the nearest whole cent (for example, $21.46).

Assume that MRI uses a perpetual inventory system to account for its inventories. What is the cost of goods sold expense that MRI will report on its statement of comprehensive income for the month ending August 31, 20X3? Round all percentages to one decimal place (for example, 45.2%).

(a) $15,515.75

(b) $15,608.50

(c) $15,646.25

(d) $15,745.25

5. Canaan's Crumpets Corp. (CCC) pays a monthly service charge to its bank based on its account activity (deposits made and cheques written) during that month. When CCC was performing its bank reconciliation for the month ending August 31, 20X2, it observed that it was charged a $120 service charge on August 31. What action must CCC take to ensure that its bank reconciliation balances?

(a) Add the amount to the bank balance on the bank statement.

(b) Add the amount to the cash balance in the general ledger.

(c) Deduct the amount from the bank balance on the bank statement.

(d) Deduct the amount from the cash balance in the general ledger.

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($'000s) Cumulative costs incurred Estimated costs to complete Progress billings during the year Collections during the year 20X4 20X5* 4,000 11,000 14,000 6,500 5,200 4,900 7,400 7,600 20X6** 17,000 4,000 6,000 5,400 20X7*** 20,200 0 1,400 2,100 Gross sales Sales returns and allowances Beginning inventory Purchases Purchase returns Freight Additional markups Markup cancellations Markdowns Markdown cancellations Cost $220,000 975,000 23,000 18,000 ||| Retail $1,685,000 38,000 411,000 1,834,000 36,000 71,000 18,000 69,000 8,000 Use the followi Event rmation to answer # of units and 3. Cost Sale price $10,000.00 have been asked inventory at 100 30, 20X9 to validate the $4,000.00 Pertinent details for $300 20x9 follow 6,300.00 Cost Ret100.00 Opening inventory Aug. 1, 20X3 of ski and 500 board Sale Aug. 5, 20X3 Purchase Aug. 8, 20X3 Freight in Aug. 8, 20X3 Sale Aug. 13, 20X3 Freight out Aug. 13, 20X3 Purchase Aug. 18, 20X3 Freight in Aug. 18, 20X3 Sale Aug. 25, 20X3 Sale Aug. 28, 20X3 225 $22350 970000 23,000 175 275 $1,685,000 180.00 6,650.00 110.00 71,000 9,225.00 6,650.00 10,725.00 ($'000s) Cumulative costs incurred Estimated costs to complete Progress billings during the year Collections during the year 20X4 20X5* 4,000 11,000 14,000 6,500 5,200 4,900 7,400 7,600 20X6** 17,000 4,000 6,000 5,400 20X7*** 20,200 0 1,400 2,100 Gross sales Sales returns and allowances Beginning inventory Purchases Purchase returns Freight Additional markups Markup cancellations Markdowns Markdown cancellations Cost $220,000 975,000 23,000 18,000 ||| Retail $1,685,000 38,000 411,000 1,834,000 36,000 71,000 18,000 69,000 8,000 Use the followi Event rmation to answer # of units and 3. Cost Sale price $10,000.00 have been asked inventory at 100 30, 20X9 to validate the $4,000.00 Pertinent details for $300 20x9 follow 6,300.00 Cost Ret100.00 Opening inventory Aug. 1, 20X3 of ski and 500 board Sale Aug. 5, 20X3 Purchase Aug. 8, 20X3 Freight in Aug. 8, 20X3 Sale Aug. 13, 20X3 Freight out Aug. 13, 20X3 Purchase Aug. 18, 20X3 Freight in Aug. 18, 20X3 Sale Aug. 25, 20X3 Sale Aug. 28, 20X3 225 $22350 970000 23,000 175 275 $1,685,000 180.00 6,650.00 110.00 71,000 9,225.00 6,650.00 10,725.00

Answer rating: 100% (QA)

1 Fixed price 20 M Cost of expense incurred during 20X6 Cumulative at end 20X6 Cumulative end 20x5 1... View the full answer