Bit Electronics Has Supplied the Following Information for 20X4

question 34

Essay

Bit Electronics has supplied the following information for 20X4. All revenues are collected when earned and all expenses are paid as incurred. The total expenses include $10,500 of amortization.
Required:
a. How much profit did Bit earn during 20X4?
b. What was the ending balance of cash?
c. Explain how cash increased even though Bit had a net loss.

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Definitions:

Raw Materials Inventory

The total cost of all components or materials a company has in stock that are intended for use in production to create finished goods.

Quarter's Production Needs

The estimated quantity of products that a company plans to produce in a specific quarter to meet customer demand.

Variable Overhead Rate

The rate at which variable overhead costs are applied to a product based on a specific activity or driver.

Direct Labor-Hours

The total hours worked directly on manufacturing a product or providing a service.