The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,435,000, $147,000 in the common stock account,

Response:

Net operating profit equals 102,000

Explanation:

Based on the following data:

Selling price per unit is $ 71

Manufacturing costs:

Direct materials cost $ 12

Direct labor cost $ 6

Variable manufacturing overhead is $ 3

Annual fixed manufacturing overhead totals $ 264,000

Selling and administrative expenses:

Variable selling/admin expenses per sold unit are $ 4

Annual fixed selling/admin expenses total $ 74,000

Year 1

Starting inventory numbers 0

Units produced throughout the year are 11,000

Sold units during the year total 8,000

Ending inventory numbers 3,000

Year 2

Beginning inventory equals 3,000

Units manufactured for the year total 12,000

Units sold throughout the year are 14,000

Ending inventory is 1,000

Unitary cost is calculated as: (12 + 6 + 3) + (264,000/11,000)= $45

Income statement details:

Sales total = (8,000*$71)= 568,000

COGS total = (8,000*45)= 360,000 (-)

Gross profit = 208,000

Variable selling/admin costs = (4*8000)= 32,000 (-)

Fixed selling/admin costs = 74,000 (-)

Net operating profit rounds to 102,000

Answer:

The Total Gross Income amounts to $41,210.

Explanation:

Continuation of the inquiry: Estimate Jamie Lee's ongoing tax obligation by filling out the form below. Utilize the standard deduction value from 2016 ($6,300) and personal exemption amount ($4,050). Every answer must provide a value for the task to be deemed complete. Enter "0" for any categories not used.

Solution:

Calculating Gross Income

Details Amount 

Salary                                        $37,800

($3,150 * 12 months) 

Interest Income from        $210 

Savings Accounts 

($160+$50) 

Raffle Prize Winnings        $3,200 

Total Gross Income          $41,210

Response:

Refer to the explanation section

Clarification:

The disparity between the inventory count recorded and the actual count suggests that the goods in stock have either been sold or lost. For the sake of ongoing operations, it is presumed they have been sold. Accordingly, the journal entry to document the sale is -

December - 31       Cost of goods sold           Debit          45,000

                           ($415,000 - $370,000)

                                        Merchandise Inventory     Credit       45,000

                    (To record the sale of merchandise: adjusted)