Samuelson and Messenger (S&M) began 2018 with 200 units of its one product. These units were purchased near the end of 2017 for $25 each. During the month of January, 100 units were purchased on January 8 for $28 each and another 200 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. S&M uses a perpetual inventory system.

Required:
1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method.
2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method.

Following is an extract from the database of a construction company. The table shows the height of walls in feet and the cost of raising them. The estimated simple linear regression equation is given as Ŷ = b0 + b1X. (Hint: Use Excel functions).

1) What is the value of the coefficient b1?

A) 254.8371

B) 0.010697

C) -2.14625

D) 86.81704

2) What is the estimated cost of raising a 10 foot wall?

A) 1123.008

B) 1505.786

C) 1103.578

D) 968.6109

At the beginning of 2017, the Mini Construction Company received a contract to build an office building for $1.2 million. Mini will construct the building according to specifications provided by the buyer, and the project is estimated to take four years to complete. The cost breakdown is as follows. Determine the amount of revenue and gross profit to be recognized each year. (do not include $ in your answer, round to 4 decimal places).

Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas’s contract specifies that it will receive a flat fee of $51,000 and an additional $21,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 25% chance that Bran will achieve the cost-savings target. Required: 1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price. 2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price. 3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.

Murkey Consultants provided Lamba Construction with assistance in implementing various cost-savings initiatives. Murkey’s contract specifies that it will receive a flat fee of $100,000 and an additional $40,000 if Lamba reaches a prespecified target amount of cost savings. Murkey estimates that there is a 20% chance that Lamba will achieve the cost-savings target.

Required:

1. Assuming Murkey uses the expected value as its estimate of variable consideration, calculate the transaction price.
2. Assuming Murkey uses the most likely value as its estimate of variable consideration, calculate the transaction price.
3. Assume Murkey uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.

Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas’s contract specifies that it will receive a flat fee of $58,000 and an additional $28,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 35% chance that Bran will achieve the cost-savings target.

Required:
1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.
2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price.
3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.

Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas’s contract specifies that it will receive a flat fee of $53,000 and an additional $23,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 20% chance that Bran will achieve the cost-savings target.

Required:
1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.
2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price.
3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.

requirement 1

Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.

• Req 2 and 3

2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price.
3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.

Pine Village council proposes to construct new recreation fields. Construction will cost $350,000 and annual O&M expenses are $80,000. The city council estimates that the value of added youth leagues is about $125,000 annually. In year 6 another $90,000 will be needed to refurnish the fields. the city council agrees to transform the ownership of the fields to a private company for $150,00 at the end of year 10.

a. Draw the cash flow diagram.

b. If the MARR for the Pine Village city is 5%, calculate the NPV of the new recreation field project.

Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas’s contract specifies that it will receive a flat fee of $66,000 and an additional $36,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 25% chance that Bran will achieve the cost-savings target.

Required:
1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price.
2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price.
3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price.