LYFT enters into an agreement with University to set up a $60K prepaid account balance to be used for student rides from University sporting events. University pays at the beginning of each month and the balance is drawn down as trips are completed during the month. The contract runs from 7/1/2019 to 12/31/2019.

a. What entry(ies) does LYFT record on the first day of the month for this transaction? How does the entry change if LYFT receives the cash on the first day versus if receives the cash on the last day of the month?

B. Assuming LYFT aggregates and books the trips against University's balance at month-end, what entry is recorded at the end of the month if only $30K in rides are taken? What entry is recorded if the $20K unused balance is refunded to University at the end of the month?

c. If the contract is set up that any usage beyond the $50K will be billed to University at the end of the month, what entry(ies) would be recorded at month end if $75K in rides were taken during the period?

d. If LYFT grants all students enrolled at University a 10% discount, what would the entry(ies) be to record a $10 student ride from a University sporting event?

e. If the University does not pay for 6 months but utilizes $100K in rides, how would this be reflected in the 12/31/2019 balance sheet? What P&L considerations would you have to assess?

QUESTION 3 (Modules 7-8) Woody Paints (WP) produces two paint types – the Silky and the Smooth. Projected sales (in units) for the 2 products in litres for 2019 - 2021:

                                                            2019              2020                  2021                  2022

Silky                                                  120,000          130,000            135,000           135,000

Smooth                                           70,000               80,000               85,000           85,000

Current sales prices in 2018 Silky $8 per litre & Smooth $10 per litre (expected to increase by 2% in 2019 and then remain stable for 3 years)

? Inventories are planned for each product so that projected ending finished goods inventory is 10% of the following year’s projected sales in units.

? The per unit raw material requirements for one litre of the products are as follows:

                                                                       Silky         Smooth        Cost per litre/kg

Base paint litres                                            0.8             0.7                     $0.50

Additives kilograms                                     0.1              0.2                      $2.00

Container (1 per unit)                                                                                  $0.20

The desired materials ending inventory is 50% of that required for the next year’s production.

Opening materials inventories:

Base paint               litres                                         72,500

Additives                kilograms                                 9,500

Containers             units                                           65,000

Direct Labour required per unit/litre (at $15 per hour – no increase expected)

                                                             Silky        Smooth

Labour hours                                       0.1           0.2

Opening finished goods inventories (in units):

Silky 60,000

Smooth 35,000

The desired ending finished goods inventory is equal to the 10% of following year’s sales in units

Required:

For the two years 2019 and 2020:

(note: use the excel templates provided)

a) Prepare a sales budget in units and dollars

b) Prepare a production budget in units for the Silky and the Smooth paint products.

c) Prepare direct materials usage budgets in units for each of the materials (separate budgets) and calculate the dollar purchases for each, showing the 2 years, for the Silky and the Smooth paint products. Note that as both products use the same materials, these materials budgets should be for the combined usage of the Silky and the Smooth paint e.g. total Base paint needed for both each year.

d) Calculate the total value of materials purchases each year. (1 mark)

e) Prepare a direct labour budget.

f) Actual production of Silky paints in 2019 turned out to be 75,000 units (litres), using 9,375 kg of additives at a cost of $16,875. Calculate the materials price and volume variance for the additives for Silky paints in 2019. (4 Marks

Assume we have two sequences of values S1 containing 1, 5, 3, 6, 7, 8 while S2 containing 2, 5, 6, 9, 7. We store these two sequences as sets and perform a set intersection and set difference. Write C++ code to do that respectively.

Problem 3-7

The following table contains the demand from the last 10 months:

a. Calculate the single exponential smoothing forecast for these data using an α of 0.20 and an initial forecast (F₁) of 33. (Round your intermediate calculations and answers to 2 decimal places.)

b. Calculate the exponential smoothing with trend forecast for these data using an α of 0.20, a δ of 0.20, an initial trend forecast (T₁) of 1.00, and an initial exponentially smoothed forecast (F₁) of 32. (Round your intermediate calculations and answers to 2 decimal places.)

c-1. Calculate the mean absolute deviation (MAD) for the last nine months of forecasts. (Round your intermediate calculations and answers to 2 decimal places.)

c-2. Which is best?

References

Worksheet

1. Beatrice Bainson runs a business altering and repairing clothes. When she started business on 1 January 2012, she bought a Scoopatitch II sewing machine for GH₵2,500. She depreciates sewing machines using the straight-line method at a rate of 20% pa, and she charges a full year depreciation in the year of acquisition and none in the year of disposal.

The business has now grown such that she needs a faster machine, and she will upgrade to Scoopatitch V during December 2015. The Scoopatitch salesman has offered her a part exchange deal as follows:

Part exchange allowance for Scoopatitch II GH₵750

Balance to be paid in cash for Scoopatitch V GH₵4,850

Required

1. Show the ledger entries for the year ended 31 December 2015 to reflect this transaction.                                                                                                   7 Marks

Show the relevant extracts in the appropriate financial statements

Clancy has $1,200. He plans to bet on a boxing match between Sullivan and Flanagan. For $4, he can buy a coupon that pays $10 if Sullivan wins and nothing otherwise. For $6 he can buy a coupon that will pay $10 if Flanagan wins and nothing otherwise. Clancy doesn’t agree with these odds. He thinks that the two fighters each have a probability of 1/2 of winning. If he is an expected utility maximizer who tries to maximize the expected value of lnW, where lnW is the natural log of his wealth, it would be rational for him to buy a. 50 Sullivan coupons and no Flanagan coupons. b. 100 Sullivan coupons and no Flanagan coupons. c. 50 Flanagan coupons and no Sullivan coupons. d. 100 Flanagan coupons and no Sullivan coupons. e. 100 of each kind of coupon

Exercise 17-17 Direct Method of Service Department Cost Allocation; Bank (LO 17-1)

Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows:

The budgeted costs in the two service departments for the year are as follows:

Required:
Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.)

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:

  
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021.
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

1. LIFO Perpetual Inventory

   The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:

   Date		Transaction	Number of Units		Per Unit		Total
   Apr. 3		Inventory	25		$1,200		$30,000
   8		Purchase	75		1,240		93,000
   11		Sale	40		2,000		80,000
   30		Sale	30		2,000		60,000
   May 8		Purchase	60		1,260		75,600
   10		Sale	50		2,000		100,000
   19		Sale	20		2,000		40,000
   28		Purchase	80		1,260		100,800
   June 5		Sale	40		2,250		90,000
   16		Sale	25		2,250		56,250
   21		Purchase	35		1,264		44,240
   28		Sale	44		2,250		99,000

   Required:

   1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

   Dunne Co. Schedule of Cost of Goods Sold LIFO Method For the Three Months Ended June 30
   	Purchases			Cost of Goods Sold			Inventory
   Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
   Apr. 3								$	$
   Apr. 8		$	$
   Apr. 11					$	$
   Apr. 30
   May 8
   May 10
   May 19
   May 28
   June 5
   June 16
   June 21
   June 28
   June 30	Balances					$			$

   2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

   Total sales	$
   Total cost of goods sold	$
   Gross profit	$

   3. Determine the ending inventory cost on June 30.
   $

   Feedback

   1. When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the goods sold. LIFO means the last units purchased are assumed to be the first to be sold. Therefore after each sale, the remaining or ending inventory is made up of the first or earliest purchases. Think of your inventory in terms of "layers." The first sale comes from the most recent purchase layer. When deciding which layer to use for costing of each sale ask yourself: "Is there enough inventory left in the most recent purchase to cover the sale?" If not, the other units sold should be taken from the second most recent purchase layer, which then contains the most recent costs. Continue this process for each transaction. If you have done this problem correctly, the remaining units making up ending inventory will be costed at the April 3 beginning inventory and the May 28 unit purchase price.

   2. Total sales are obtained by taking the number of units sold times their sale prices for all sales and adding these amounts together. The total cost of goods sold can be obtained by adding the LIFO costs in the perpetual inventory record. Sales minus cost of goods sold equals gross profit.

   3. The ending inventory is what is left after subtracting the cost of goods sold from the goods available for sale. Multiply the units remaining after the last sale by their corresponding earliest layer cost to determine the LIFO cost of the ending inventory.

Loading item

There was an error loading this item. If this continues to occur, please contact Technical Support.

Check My Work

• Previous
• Next

• 100% Correct
• Partially Correct
• Incorrect
• Needs Instructor Grading

Basic Calculatorclose

0

UseEntBSBSpCEHomCEnd

789+

456-

123*

0.=/

Jeffery Arnett talked about the social shifts that have occurred in the last 40 years that have opened the way for emerging adulthood to exist. Name and define two of these social shifts, and explain how they have allowed for people to delay adult roles in emerging adulthood.