Question

The Mosquito Abatement Commission is a newly organized federal agency with three primary programs: coordinating state government abatement functions, conducting research on mosquito abatement, and promoting abatement through public education. The following information is available at the end of the first quarter (December 31, 2017):

	Government Coordination					Research			Public Education			Total
Apportionments from OMB												$	7,350,000
Allotments—first quarter		$	3,200,000			$	2,488,000		$	1,662,000			7,350,000
Salaries paid			1,920,000				995,000			1,197,000			4,112,000
Accrued salaries payable			39,000				50,000			29,000			118,000
Supplies ordered and received			244,000				595,000			219,000			1,058,000
Supplies used			175,000				591,000			194,000			960,000
Depreciation			58,000				128,000			13,000			199,000
Equipment purchases			1,410,000				831,000			60,000			2,301,000
Program revenue: Charges for service										195,000			195,000

Required:
Prepare a Statement of Net Cost for the quarter ended December 31. (Deductions should be entered with a minus sign.)

Answer 1

cost measured on accrual basis
govermnet coordinate = 1920000+39000+175000+58000 = 2192000
research = 995000+50000+591000+128000 = 1764000
public education = 1197000+29000+194000+13000 = 1433000
Mosquito abatement commission statement of net cost
coordinate state government abatement programs
total gross cost (A)					2192000
conduct research on mosquito abatement
total gross cost (B)					1764000
promote abatement through public education
total gross cost (C )					1433000
less: program revenues					-195000
net cost					1238000
total entity cost
total gross program cost					5389000
less: program revenues					-195000
net cost					5194000