n 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 2,628,000 | $ | 2,890,800 | |||
| Estimated costs to complete as of year-end | 5,256,000 | 2,628,000 | 0 | ||||||
| Billings during the year | 2,170,000 | 2,502,000 | 5,328,000 | ||||||
| Cash collections during the year | 1,885,000 | 2,600,000 | 5,515,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary
journal entries for the year 2018 (credit "Various accounts" for
construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2019 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2020 (credit "Various accounts" for
construction costs incurred).
3. Complete the information required below to
prepare a partial balance sheet for 2018 and 2019 showing any items
related to the contract.
4. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete
information.
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 3,885,000 | $ | 3,285,000 | |||
| Estimated costs to complete as of year-end | 5,256,000 | 3,185,000 | 0 | ||||||
5. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete
information.
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 3,885,000 | $ | 4,155,000 | |||
| Estimated costs to complete as of year-end | |||||||||
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
|
In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss)
In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2018: 1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss).
In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss).
Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
|
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In: Accounting
This exercise deals with the case where price is not a constant but related to quantity demanded. The demand (price) function is P = 50 − 2.5Q, where Q is the quantity demanded. The revenue function is
TR = QxP =50Q -2.5Q2
and the total cost function is
TC = 25+25Q.
Using Excel, develop a table showing columns for Q, P, TR, TC, and Profit (TR-TC). Graph the total cost and total revenue functions at the values of Q: 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9. Indicate approximately on the graph the break-even output levels where total cost equals total revenue. Distinguish between these two output levels.
In: Economics
Chipolo sells a coin-sized tracking tag that attaches to keys, wallets, and other personal items. Chipolo began January with an inventory of 200 tags purchased from its supplier in November last year at a cost of $12 per tag, plus 100 tags purchased in December last year at a cost of $15 per tag. Chipolo sells the tags at a price of $30 per tag, on account with terms n/30, FOB destination. Chipolo uses a perpetual inventory system to account for the following transactions.
| Jan. | 8 | Chipolo gave 250 tags to a courier company (FedEx) to deliver to customers. | ||
| Jan. | 9 | FedEx confirmed that all 250 tags were delivered today to customers. | ||
| Jan. | 11 | Chipolo ordered 350 tags from its supplier. The supplier was out of stock but promised to send them to Chipolo as soon as possible. Chipolo agreed to a cost of $21 per tag, n/30. | ||
| Jan. | 17 | Chipolo received cash payment from customers for 125 of the tags delivered 8 days earlier. | ||
| Jan. | 21 | The 350 tags ordered on January 11 were shipped to and received by Chipolo today. | ||
| Jan. | 23 | Chipolo gave 375 tags to FedEx, which were delivered “same day” to customers. | ||
| Jan. | 31 | Chipolo counted its inventory and determined 20 tags were on hand. Chipolo made a “book-to-physical adjustment” to account for the missing 5 tags. |
Assume Chipolo uses weighted average cost in its perpetual inventory system. Prepare the journal entry for each transaction
1 - Record the tags delivered to customers.
2 - Record the sale of tags to customers.
3 - Record the cost of tags sold to customers.
4 - Record the order for tags made by Chipolo from its supplier
5 - Record the cash collected from customers.
6 - Record the purchase of tags after deducting the allowance given by supplier for delay between order and shipment.
7-Record the sale of tags to customers.
8-Record the cost of tags sold to customers.
9-Record the loss of inventory at its cost.
In: Accounting
In: Finance
The purpose of this assignment is to identify an organizational problem to solve within your current workplace or industrywhiuch is in the research field conducting surveys and construct a problem statement that can be used as the basis for an action research project.
For this assignment, the first step is to identify an organizational problem to solve within your current workplace or industry. This is an opportunity for you to apply your learning while addressing a real-world problem.
Part of completing an action research project is clearly identifying and stating the organizational problem that needs to be resolved through the use of a problem statement. The problem statement must clearly articulate the single goal of the action research project. Use what you have learned in the Topic Materials to construct a problem statement for your action research project. Read and complete the "Writing a Problem Statement" handout to construct your problem statement. Submit the completed handout to your instructor.
Your problem statement will eventually become part of your final business proposal that will be submitted in Topic 8.
Writing a Problem Statement
When writing a problem statement, it is important to clearly identify and state the organizational problem that needs to be resolved. To articulate this information clearly, the following pieces can be used as building blocks for the statement.
|
Original problem or focus question |
Restate the initial problem that launched the inquiry process, or rewrite the focus question or one of the clarifying questions as a statement. |
|
Stakeholders who are most affected by the problem |
Identify who is most directly impacted by this problem. Alternately, who would benefit the most if this problem were resolved? |
|
Type of problem |
For example, is the problem based upon skills, attitudes, knowledge, resources, competition, defects, or something else? |
|
Suspected cause(s) of the problem |
Based on the data analysis or the root cause analysis, what does the team think is the most significant cause or causes contributing to this problem? What, if addressed, would make the greatest impact on resolving the problem? Include specific evidence. |
|
Goal for improvement and long-term impact |
Describe the target for impact. The goal should be measurable. |
|
Impact to stakeholders |
Describe possible impacts to stakeholders if the problem is not addressed. |
|
Proposal for addressing the problem |
The proposal is a high-level strategy that represents promising practices drawn from research, local knowledge, and local expertise. Note sources, if possible, when presenting this information. This proposal will become the basis for subsequent action planning. |
|
Final problem statement |
Tie the above statements into three to five coherent sentences that could be easily understood by a wide range of stakeholders. |
Sample Writing a Problem Statement Worksheet
|
Original problem or focus question |
· Call center representatives are not meeting quality standards. |
|
Stakeholders who are most affected by the problem |
· External customers and call center representatives |
|
Impact to stakeholders |
· Loss of customers and revenue · Lower performance evaluations for representatives · Higher call center attrition · Potential missed service level agreements (fines) |
|
Type of problem |
· Skills and Resources: Without the appropriate skills training and tools to perform the job, the call center representatives are not prepared to succeed in their positions. |
|
Suspected cause(s) of the problem |
· Call center representatives do not receive adequate training. · There are insufficient online resources for representatives to refer to in production. · There are insufficient management resources for coaching and mentoring representatives. |
|
Goal for improvement and long-term impact |
· The call center will achieve a 99.8% quality rating with no more than 2% of the staff on quality action plans. |
|
Proposal for addressing the problem |
· Increase training time to meet industry standards. · Provide relevant, updated online tools for call center representatives. |
|
Final problem statement |
· Many call center representatives are not achieving quality standards, thereby contributing to the overall low quality rating (92%) for the call center. Through data and process evaluation, it was determined that the training time for call center representatives is 30% less than other similar call centers, which may contribute to lack of skills training. In addition, the online tools available to the call center representatives are not updated frequently with procedural changes and do not contain all required information necessary for representatives to perform their job. The low quality over the past 6 months has resulted in a 2% decrease in customers and a $550,000 loss in annual revenue. Decreased employee satisfaction in the call center due to the issue has contributed to a 5% increase in voluntary attrition, which costs the business $80,000 annually. There is an opportunity to improve quality and reduce both customer and employee attrition by addressing the skills training and resource issue in the call center. |
In: Operations Management
|
Choice |
Marginal Gain from more Poems |
Marginal Loss from fewer Cucumber |
Overall Gain or Loss |
Is Previous choice optimal? |
|
0 poems, 18 cucumbers |
Starting point |
Starting point |
— |
— |
|
1 poem, 15 cucumbers |
||||
|
2 poems, 12 cucumbers |
||||
|
3 poems, 9 cucumbers |
||||
|
4 poems, 6 cucumbers |
||||
|
5 poem, 3 cucumbers |
||||
|
6 poems, 0 cucumbers |
In: Economics
When you write a business message, there are three drafts for the message. explain and differentiate between all three
In: Operations Management
| XYZ Football Club is a small professional football team owned by Singh Corporation. | ||||||||||
| On the worksheet tab are the November 30, 2019, account balances of XYZ Football as of | ||||||||||
| November 30, 2019. The revenue and expense account balances represent the results | ||||||||||
| of transactions recorded during the first 11 months of 2018. XYZ currently has 7,000 shares of | ||||||||||
| stock. All income tax effects are to be ignored for this project. | ||||||||||
| On November 30, 2019, XYZ Football ledger showed the following accounts: cash $238,000, | ||||||||||
| concessions inventory $10,200, supplies inventory $8,200, prepaid stadium rental $12,800, | ||||||||||
| equipment $250,000, accumulated depreciation - equipment $117,200, building $400,000, | ||||||||||
| accumulated depreciation - building $115,500, accounts payable $20,220, wages payable $0, | ||||||||||
| utilities payable $0, interest payable $0, unearned admission revenue $3,300, long-term notes | ||||||||||
| payable $43,000, common stock ($10 par value per share) $70,000, | ||||||||||
| Retained earnings at 1/1/19 $280,860, dividends $0, admission revenue $512,600, concessions | ||||||||||
| revenue $528,650, wages expense $430,200, stadium rental expense $187,000, concessions | ||||||||||
| expense $118,230, supplies expense $0, utilities expense $16,600, advertising expense $6,300, | ||||||||||
| maintenance expense $13,800, depreciation expense - equipment $0, depreciation | ||||||||||
| expense - building $0, interest expense $0. | ||||||||||
| Instructions: | ||||||||||
| 1. Prepare the three basic financial statements; income statement, statement of retained earnings, | ||||||||||
| and balance sheet. | ||||||||||
| December Transactions | ||||||||||
| Dec. | 5 | Paid accounts payable of $4,950. | ||||||||
| 6 | Paid stadium rental of $8,500 in advance. | |||||||||
| 6 | Purchased supplies, $720, on account. | |||||||||
| 7 | Deposited $16,000 of admissions receipts. | |||||||||
| 9 | Unearned admissions revenue is for gift certificates purchased for admission into future | |||||||||
| shows. $480 more of these gift certificates were sold to a local restaurant business, for cash. | ||||||||||
| 10 | Purchased $2,150 of concessions items on credit. | |||||||||
| 12 | Acquired additional equipment worth $34,000 by paying $500 cash and giving a long-term | |||||||||
| note payable for the balance. | ||||||||||
| 14 | Paid wages of $14,200 for the period December 1 through 14. | |||||||||
| 16 | Paid for the supplies purchased on December 6. | |||||||||
| 17 | Purchased $1,800 of supplies on credit. | |||||||||
| 19 | Sold 600 shares of $10 par value common stock for $10 a share. | |||||||||
| 21 | Deposited $22,750 from concessions sales and $10,660 of admissions receipts. | |||||||||
| 24 | Paid $1,600 for repairs to roof for weather damage. | |||||||||
| 25 | Purchased $8,200 of concessions items on account. | |||||||||
| 27 | Paid for the supplies purchased on December 17. | |||||||||
| 28 | Paid wages of $17,720 for the period December 15 through 28. | |||||||||
| 30 | Paid $2,500 to the newspaper for advertisements that appeared in December. | |||||||||
| 31 | Deposited $23,000 for admissions receipts and $17,850 from concessions sales. | |||||||||
| 31 | Declared and paid the annual dividend, amounting to $7,600. | |||||||||
In: Accounting
The college hiking club is having a fund raiser to buy new equipment for fall and winter outings. The club is selling Chinese fortune cookies at a price of $1 per cookie. Each cookie contains a piece of paper with a different number written on it. A random drawing will determine which number is the winner of the dinner for two at a local Chinese restaurant. The dinner is valued at $35. Since the fortune cookies were donated to the club, we can ignore the cost of the cookies. The club sold 701 cookies before the drawing.
(a) Lisa bought 22 cookies. What is the probability she will win
the dinner for two? (Round your answer to three decimal
places.)
What is the probability she will not win? (Round your answer to
three decimal places.)
(b) Lisa's expected earnings can be found by multiplying the value
of the dinner by the probability that she will win. What are Lisa's
expected earnings? (Round your answer to two decimal places.)
$
How much did she effectively contribute to the hiking club? (Round
your answer to two decimal places.)
$
In: Statistics and Probability
Problem 10-16 (Some Useful Excel Functions for Modeling)
The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model:
NA = 195 - 0.6PA + 0.25PB
NB = 301 + 0.08PA - 0.5PB
A. Construct a model
for the total revenue and implement it on a spreadsheet. What is
the total revenue from selling the two products based on the
current prices?
$ ___________________________
Assume that product A price is kept at $200. Develop a data table
to estimate the optimal price for product B in order to maximize
the total revenue. Vary the price of product B from $250 to $500 in
increments of $10.
B. Max revenue occurs at Camera B price of $ . $___________________________________________
C. The maximum revenue obtained with the above price of Camera B would be $ . $________________________
In: Statistics and Probability