Purchase Solution

Jo builds and sells robots using component parts purchased f

Not what you're looking for?

Ask Custom Question

5. Jo builds and sells robots using component parts purchased from a supplier and assembled and painted in Jo's factory. The boats sell for $1,200 each. Component parts cost $400 per boat, and each boat requires 12 labor hours to assemble at a cost of $14 per hour. Jo's factory is rented for $2,000 per month, which includes utilities. Jo receives a salary of $3,000 per month. The boats are sold by outside sales representatives who receive a 5% sales commission. 80 boats were produced and 75 sold during 2011. Prepare a GAAP compliant income statement.

Purchase this Solution

Solution Summary

Jo builds and sells robots using component parts purchased from a supplier and assembled and painted in Jo's factory. The boats sell for $1,200 each. Component parts cost $400 per boat, and each boat requires 12 labor hours to assemble at a cost of $14 per hour. Jo's factory is rented for $2,000 per month, which includes utilities. Jo receives a salary of $3,000 per month. The boats are sold by outside sales representatives who receive a 5% sales commission. 80 boats were produced and 75 sold during 2011. Prepare a GAAP compliant income statement.

Solution Preview

Jo builds and sells robots using component parts purchased from a supplier and assembled and painted in Jo's factory. The boats sell for $1,200 each. Component parts cost $400 per boat, and each boat requires 12 labor hours to assemble at a ...

Purchase this Solution


Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.