Periodic System— Calculating Ending Inventory and Cost of Sales using LIFO
The following information is available for Water Inc.
| Date | Units | Unit Cost |
|---|---|---|
| January 1, 2020 (beginning inventory) | 100 | $50.00 |
| Purchases: January 10, 2020 | 75 | 52.00 |
|
January 15, 2020 |
150 | 52.50 |
|
January 30, 2020 |
100 | 55.00 |
The company maintains a periodic inventory system. A physical inventory count shows 125 units in stock on January 31. What is (a) ending inventory on January 31, and (b) cost of goods sold for January, using the LIFO inventory method?
| a. Ending inventory on January 31, 2020 | Answer |
| b. Cost of goods sold for January | Answer |
In: Accounting
On May 1, 2020, Jackson Construction Company contracted to construct a factory building for a total contract price of $9,600,000. The building was completed by May 31,2022. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2020, 2021, and 2022 are given below.
2020 2021 2022
Contract costs incurred during the year $3,400,000 $2,400,000 $2,900,000
Estimated costs to complete the contract at Dec 31 4,600,000 3,100,000 -0-
Billings 1,200,000 4,100,000 4,300,000
"(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore income taxes.)
(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022. (Ignore incomes taxes.)"
In: Accounting
can you explain step by step: Chapter 16 accounting intermediate II -Basic and diluted EPS
1-Assume that the following data relative to Rice company for 2020 is available:
transactions in common shares change Cumulative
Jan. 1,2020 Beginning number 650,000
Apr 1,2020 Purchase of treasury shares (50,000) 600,000
June 1,2020 100% Stock dividend 600,000 1,200,000
Dec 1,2020 Issuance of shares 200,000 1,400,000
5% cumulative convertible preferred stock
$1,000,000 sold at par on January 1, 2020 convertible into 200,000 shares of common stock
Stock options:
Exercisable at the option price of $30 per share. Average market price in 2020, $35 and there were 60,000 options outstanding since 2017
(A) compute the basic earnings per share for 2020.
(B) compute the diluted earnings per share for 2020
In: Accounting
1. On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary’s original cost was $200,000 and as of January 1, 2017, $20,000 in depreciation had been recorded on the subsidiary’s books. At the date of sale, the equipment had a 10-year remaining life, straight-line. It is now December 31, 2021 (5 years since the sale), and the parent still holds the equipment.
REQUIRED: Prepare the consolidation eliminating entries for 2021
2. Baracus, Inc. pays $95,000 in cash and stock to acquire 80% of the voting stock of Clover Company. The fair value of the noncontrolling interest is $21,250. The book value of the acquired company is $66,250, and no revaluations of acquired identifiable net assets are necessary.
REQUIRED:
How much is total goodwill?
What amount and percent of goodwill is allocated to the controlling
interest?
What amount and percent of goodwill is allocated to the
non-controlling interest?
In: Accounting
INTEGRATED MARKETING COMMUNICATION CASE STUDY
BMW is a German multinational company which produces luxury cars. BMW vehicles are sold mostly to consumers who look for high standards for quality, luxury, and performance which BMW is known for. In Melbourne, there are several BMW dealerships and most new car sales took place through these dealerships after customers take a test drive and have an opportunity to inspect the vehicle and consider different options available. Due to the COVID-19 restrictions, car dealerships including, BMW showrooms, are closed in Melbourne since 6 August. However, the customers may request a test drive or arrange to purchase a car over the phone or reach out to a salesperson via other online methods. This situation will likely continue until December 2020. How could BMW dealerships in Melbourne use the Integrated Marketing Communication approach and its positive brand image to maintain car sales during this period?
Base your answer on information available online and your observations and support it with the theoretical knowledge acquired in the Unit.
Above critical thinking case study and you need analyse it with relevant Integrated Marketing Communication theory learned to identify solutions to the problems in the scenario.
In: Economics
While on vacation, Kyle Kingston, the president and chief executive officer of Remstat, Inc., is called by the CEO of Viokam Corporation, who asks Kingston if Remstat would be interested in buying 25 percent of the outstanding shares of Viokam. Remstat is a billion dollar conglomerate which has contemplated acquiring Viokam for some time. Kingston tells Viokam's CEO that Remstat is not interested. Kingston tells Viokam’s CEO, however, that KKIM, Inc., would be willing to buy the shares of Viokam. Kingston is the 100 percent shareholder of KKIM. Viokam sells the shares to KKIM for $35 million. A year later, KKIM sells the shares for $55 million to a mutual fund company. When Remstat's directors discover KKIM's purchase and sale of the Viokam shares, they bring an action against Kingston on behalf of Remstat. Which of the following is correct?
In: Accounting
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. The relationship has been mutually profitable. Sterling could not have built its reputation as an industry leader without NoBugs's reliable and consistently high-quality products; Sterling's business has enabled NoBugs to grow rapidly while providing its investors with an attractive rate of return. Some months ago, several of Sterling's computers exploded shortly after installation. Upon investigation, Sterling discovered that tiny imperfections in NoBugs's microchips had aggravated a dormant design defect in the computers, causing the explosions. Analysis of the chips indicated that they were indeed below specifications and that the imperfections were caused by a slight miscalibration of NoBugs's encoding equipment. NoBugs recalibrated the equipment and promptly resumed production of perfect chips. Sterling's losses from the explosions - lost profits, out-of-pocket costs associated with compensating customers for the explosions, and injury to business reputation - are estimated to exceed $20 million. Sterling and NoBugs disagree on the amount of the loss for which NoBugs should be responsible. Sterling has a strong legal case for breach of contract against NoBugs. Sterling's CEO is considering a lawsuit. She asks you to prepare a report discussing litigation strategy and the advantages and disadvantages of litigation; and discussing pretrial planning should the company opt for litigation.
In: Economics
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.6 at the
.01 significance level.
The null and alternative hypothesis would be:
two-tailed
right-tailed
left-tailed
In: Statistics and Probability
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.3 at the
.005 significance level.
The null and alternative hypothesis would be:
The test is:
left-tailed
two-tailed
right-tailed
Based on a sample of 75 student grades, the sample mean GPA was
3.28 with a standard deviation of 0.02
The test statistic is: (Round to 3 decimals)
Based on this we:
A shareholders' group is lodging a protest against your company.
The shareholders group claimed that the mean tenure for a chief
exective office (CEO) was at least 9 years. A survey of 59
companies reported in The Wall Street Journal found a sample mean
tenure of 7.3 years for CEOs with a standard deviation of s=s= 5
years (The Wall Street Journal, January 2, 2007). You don't know
the population standard deviation but can assume it is normally
distributed.
You want to formulate and test a hypothesis that can be used to
challenge the validity of the claim made by the group, at a
significance level of α=0.01α=0.01. Your hypotheses are:
Ho:μ=9Ho:μ=9
Ha:μ<9Ha:μ<9
What is the test statistic for this sample?
test statistic = (Report answer accurate to 3 decimal
places.)
What is the p-value for this sample?
p-value = (Report answer accurate to 4 decimal
places.)
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
In: Statistics and Probability
Shamrock Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,818,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,424,000. In both years, the company incurred a 10% interest expense on $2,424,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $575,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Shamrock Corporation on June 1, 2019, consisted of 1,037,000 shares of common stock outstanding and 19,100 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On October 1, 2019, Shamrock sold an additional 511,000 shares of the common stock at $20 per share. Shamrock distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Shamrock was able to sell an additional 785,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years.
Determine the weighted-average number of shares that Shamrock
Corporation would use in calculating earnings per share for the
fiscal year ended:
| Weighted-average number of shares | ||||
| (1) | May 31, 2020 | |||
| (2) | May 31, 2021 |
Prepare, in good form, a comparative income statement, beginning with income from operations, for Shamrock Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Shamrock’s annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.)
In: Accounting