Required information

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 420 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 180 units from the March 25 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

The following information applies to the questions displayed below.]

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

Required information

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

Identify the applicable accounting convention for the following business scenario and explain your choice

The Morrison Company receives much of its revenue from those customers who buy or rent furniture and appliances on the installment plan. Because the company uses an accrual-based accounting system, revenue is recognized at the point of sale, even though cash comes in on a monthly basis from customers. Lately, the company's accountant is questioning the use of the accrual basis for recognizing revenue, because several customers have defaulted on their contracts, causing problems in the accounting system.

Direct mail advertisers send solicitations​ ("junk mail") to thousands of potential customers in the hope that some will buy the​ company's product. The response rate is usually quite low. Suppose a company wants to test the response to a new flyer and sends it to1030 people randomly selected from their mailing list of over​ 200,000 people. They get orders from 104 of the recipients. Use this information to complete parts a through d.

​a) Create a 90​% confidence interval for the percentage of people the company contacts who may buy something.

(__%___%)

​(Round to one decimal place as​ needed.)

Read Case Ticketmaster – Making Better Decisions passage below and answer the following questions 1-4 in bold :

Case Study: Ticketmaster
In 2010, Ticketmaster found out the hard way that the entertainment industry is not, in fact, as recession-proof as it was once widely believed to be. The company, which sells tickets for live music, sports, and cultural events, and which represents a significant chunk of parent company’s Live Nation Entertainment’s business, saw a drop in ticket sales that year of a disconcerting 15 percent. Then there was the mounting negative press, including artist boycotts, the vitriol of thousands of vocal customers, and a number of major venues refusing to do business with Ticketmaster.

Yet 2012 has been more friendly to the company—under the leadership of former musician and Stanford MBA- educated CEO Nathan Hubbard, who took over in 2010 when Ticketmaster merged with Live Nation, the country’s largest concert promoter. Third-quarter earnings were strong, with just under $2 billion in revenue, a 10 percent boost from the same period last year, driven largely by Live Nation’s ticketing and sponsorship divisions. Ticketmaster was largely responsible as well, thanks to the sale of 36 million tickets worth $2.1 billion, generating $82.1 million in adjusted operating income, which translates to an increase of 51 percent for the year.
That’s because Hubbard knows how to listen, and read the writing on the wall, “If we don’t disrupt ourselves, someone else will,” he said, “I’m not worried about other ticketing companies. The Googles and Apples of the world are our competition.”

Some of the steps he took to achieve this included to the creation of Live Analytics, a team charged with mining the information (and related opportunities) surrounding 200 million customers and the 26 million monthly site visitors, a gold mine that he thought was being ignored. Moreover Hubbard redirected the company from being an infamously opaque, rigid and inflexible transaction machine for ticket sales to a more transparent, fan-centered e-commerce company, one that listens to the wants and needs of customers and responds accordingly. A few of the new innovations rolled out in recent years to achieve this include an interactive venue map that allows customers to choose their seats (instead of Ticketmaster selecting the “best available”) and the ability to buy tickets on iTunes.

Hubbard eliminated certain highly unpopular service fees, like the $2.50 fee for printing one’s own tickets, which he announced in the inaugural Ticketmaster blog he created.
Much to the delight of event goers—and the simultaneous chagrin of promoters and venue owners, who feared that the move would deter sales—other efforts toward transparency included announcing fees on Ticketmaster’s first transaction- dedicated page, instead of surprising customers with them at the end, while consolidating others. “I had clients say, ‘What are you doing? We’ve been doing it this way for 35 years,’” Hubbard recalled, “I told them, ‘You sound like the record labels.’”

Social media is an integral part of listening, and of course, “sharing.” Ticketmaster alerts on Facebook shows friends of purchasers who is going to what show. An app is in the works that will even show them where their concert going friends will be seated. Not that it’s all roses for Ticketmaster—yet. Growth and change always involve, well, growing pains, and while goodwill for the company is building, it will take some time to shed the unfortunate reputation of being the company that “everyone loves to hate.” Ticketmaster made embarrassing headlines in the first month of 2013 after prematurely announcing the sale of the president’s Inaugural Ball and selling out a day early as a result, disappointing thousands. But as the biggest online seller of tickets for everything from golf tournaments to operas to theater to rock concerts, and with Hubbard’s more customer-friendly focus, Ticketmaster should have plenty of opportunity to repent their mistake

1. Identify the problems that Ticketmaster was facing, using cause and effect analysis. What were the Symptomatic Effects? What were the Underlying Causes?

2. What process(es) did Nathan Hubbard use to Generate Alternatives? What alternatives were available to Mr. Hubbard? What types of Uncertainty did he experience?

3. How did Mr. Hubbard select his most desirable alternative? Describe which type of Decision Making he used, and explain your findings.

4. Were the recent decisions that Mr. Hubbard made effective, according to the concepts in Chapter 7 – Decision Making? Explain your response.

Tutorial: Trusts

1.         X’s will created a trust under which the income is to be distributed as follows:

To his widow                                                 - 50%

To his 25 year old insane son                   - 25%

To be accumulated for the benefit of his 17

year old daughter to vest upon her attaining

the age of 21                                                 - 25%

The trustee also has a discretion to pay or apply part or all of the daughter’s share of the income for her education, welfare, betterment or advancement in life.

During the last tax year the trust had net income of $50,000. The trustee paid $7,500 towards the cost of the daughter’s education.

The widow received, as other income, net rents of $10,000. The son received $15,000 under a trust created by his grandfather’s will and the daughter earned $3,750 from working part time in a cafe.

Who is assessable on the income of the trust estate? Indicate the basis upon which they would be assessed and calculate the taxable incomes (indicating any entitlements to credits) of the widow, son and daughter.

2          Jack creates a trust under which the beneficiaries are his two infant children. The children both receive distributions. How may the Commissioner assess those distributions? How might Jack avoid this result?

3          Under the terms of the Golf family trust (which earns half of its $160,000 income from Australian sources (business profits from a permanent establishment) and the balance from overseas sources), 25% of the trust's income is to be paid to Harry Golf, a 24 year old accountant in practice in Townsville. An additional 25% is paid to Ian Golf, Harry's 17 year old brother who lives in New Zealand with his mother and the balance is to be paid, at the trustee's discretion, to Jim Golf, a cousin who has been an Australian resident since he turned 21 on 31st December last year. The trustee did in fact exercise his discretion in Jim's favour and decided to pay him the same amount that Harry and Ian were receiving. The trustee retained the balance of the trust's income for reinvestment.

            Who will be taxed, on what amounts, at what rates and subject to what credits

           (if any)? Provide detailed reasons for your answer.