Use the following information to determine net income in the financial statements under GAAP:

Number of boats to be sold 530
Upstream costs $5,150,000
Direct materials per boat $53,000
Direct labor per boat $33,000
Overhead per boat $23,000
Downstream costs $2,150,000

Assume the company wants to sell each boat for 25% more than the cost to produce the boat. Which of the following would be the sales price under GAAP and for internal decision purposes?

GAAP Internal Decision
a) $120,000 $136,800
b) $136,800 $136,800
c) $120,000 $114,000
d) $136,800 $114,000

Use the above information to determine net income in the financial statements under GAAP:
Assume the company wants to sell each boat for 20% more than the cost to produce the boat.

Multiple Choice

a. $10,000,000
b. $3,000,000
c. $7,000,000
d. $5,000,000

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?