Nailed It! Construction (Nailed It! or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 20X1, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to selling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:
•As of June 30, 20X1, in total, Nailed It! has purchased $75,000 of component parts. As of June 30, 20X1, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 20X1.
•During the three months ended September 30, 20X1, Nailed It! purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 20X1. During the three months ended September 30, 20X1, Nailed It! incurred an additional $50,000 of direct costs to integrate the component parts into the Village Apartments construction project.
•As of September 30, 20X1, Nailed It! determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.
•As of December 31 20X1, the construction project was completed. During the three months ended December 31, 20X1, Nailed It! purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 20X1. Nailed It! has incurred $187,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended December 31,
If Village Apartments cancels the contract, Nailed It! will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Nailed It! will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Nailed It!.
Required: 1.Does the performance obligation meet any of the criteria or recognition of revenue over time?
2.How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods:
2a.The three months ended June 30, 20X1?
2b.The three months ended September 30, 20X1?
2c.The three months ended December 31, 20X1?
How should we journalize the recognition of revenue using the input method?
In: Accounting
On March 1, 2017, the Company entered into an agreement with a
customer, Thornock Square Apartments, to construct a residential
apartment building for a fixed price of $1.5 million. The Company
estimates that it will incur costs of $1 million to complete
construction of the apartment building. The apartment building will
only transfer to Thornock Square Apartments once the construction
of the entire building is complete. In addition, Thornock Square
Apartments has various design requirements that would require
Cannon to incur significant costs to rework the building prior to
selling it to a customer other than Thornock Square
Apartments.
To construct the apartment building, Cannon acquires standard
materials that it regularly uses in construction contracts for both
residential and commercial buildings. These materials are used to
manufacture generic component parts for inclusion in Thornock
Square Apartments’ residential buildings. These standard materials
remain interchangeable with other items until they are deployed in
Thornock Square Apartments building. The Company has made the
following purchases and incurred the following costs throughout the
construction progress:
A. As of June 30, 2017, in total, Cannon has purchased $75,000 of
component parts. As of June 30, 2017, $25,000 of component parts
remain in inventory and $50,000 have been integrated into the
project. Further, Cannon has incurred $12,500 of direct costs to
integrate the component parts into the Thornock Square Apartments
construction project during the three months ended June 30,
2017.
B. During the three months ended September 30, 2017, Cannon
purchased an additional $500,000 of component parts ($575,000 in
total). Of the $575,000 of component parts, $325,000 remain in
inventory and $200,000 have been integrated into the project during
the three months ended September 30, 2017. During the three months
ended September 30, 2017, Cannon incurred an additional $50,000 of
direct costs to integrate the component parts into the Thornock
Square Apartments construction project.
C. As of September 30, 2017, Cannon determined that the project was
over budget and revised its cost estimate from $1 million to $1.25
million.
D. As of December 31 2017, the construction project was completed.
During the three months ended December 31, 2017, Cannon purchased
an additional $425,000 of generic component parts ($1 million in
total). Of the $1 million component parts, $0 remain in inventory
and $750,000 were integrated into the project during the three
months ended December 31, 2017. Cannon has incurred $187,500 of
direct costs to integrate the component parts into the Thornock
Square Apartments construction project during the three months
ended December 31, 2017.
If Thornock Square Apartments cancels the contract, Cannon will be
entitled to reimbursement for costs incurred for work completed to
date plus a margin of 20 percent, which is considered to be a
reasonable margin. Cannon will not be reimbursed for any materials
that have been purchased for use in the contract but have not yet
been used and are still controlled by Cannon.
1) What amount of revenue should be recognized for the following periods: a. The three months ended June 30, 2017? b. The three months ended September 30, 2017? c. The three months ended December 31, 2017? Please explain calculations
2)Create a revenue recognition summary table which summarises the calculations used to find the revenue in each quarter
3)How should the entity recognize revenue for the satisfaction of its performance obligation in FASB code?
(All other chegg answers were wrong for this question)
In: Accounting
a. When examining the effect of price on demand, which factors are taken as given?
c. What does a firm use for predicting the revenue consequences of alternative output and pricing policy?
d. Do elasticity and slope mean the same thing? Explain.
e. “There is a direct relationship between MR and price elasticity” Discuss!
In: Economics
Let X1, X2, and X3 represent the times necessary to perform three successive repair tasks at a service facility. Suppose they are normal random variables with means of 50 minutes, 60 minutes, and 40 minutes, respectively. The standard deviations are 15 minutes, 20 minutes, and 10 minutes, respectively.
a) Suppose X1, X2, and X3 are independent. All three repairs must be completed on a given object. What is the mean and variance of the total repair time for this object?
b) Suppose X1, X2, and X3 are independent. All three repairs must be completed on a given object. Find the probability that the total repair time is less than 180 minutes.
c) Suppose that X1, X2, and X3 are dependent so that the covariance between X1 and X2 is -150, between X1 and X3 is 60, and between X2 and X3 is -45. If all three repairs must be completed on a given object, what is the mean and variance of the total repair time for this object?
In: Math
We are interested in exploring the relationship between the weight of a vehicle and its fuel efficiency (gasoline mileage). The data in the table show the weights, in pounds, and fuel efficiency, measured in miles per gallon, for a sample of 12 vehicles.
| Weight | Fuel Efficiency |
|---|---|
| 2710 | 24 |
| 2570 | 27 |
| 2620 | 29 |
| 2750 | 38 |
| 3000 | 23 |
| 3410 | 24 |
| 3640 | 21 |
| 3700 | 27 |
| 3880 | 22 |
| 3900 | 19 |
| 4060 | 18 |
| 4710 | 15 |
e.) What percent of the variation in fuel efficiency is
explained by the variation in the weight of the vehicles, using the
regression line? (Round your answer to the nearest whole
number.)
g.) For the vehicle that weighs 3000 pounds, find the residual (y − ŷ). (Round your answer to two decimal places.)
i.) Remove the outlier from the sample data. Find the new correlation coefficient and coefficient of determination. (Round your answers to two decimal places.)
| correlation coefficient | |||
| coefficient of determination |
Find the new best fit line. (Round your answers to four decimal
places.)
ŷ =
In: Statistics and Probability
5) Let's examine the relationship between CI's and hypothesis tests: (a) You calculate a 90% confidence interval for μ and come up with (-10, 26). If you test H0: μ = 27 and use α = .10, will you reject H0? Why or why not? (b) Now you calculate a 95% CI for μ and come up with (3, 7). If you test H0: μ = 9 and use α = .10, will you reject H0? Why or why not? (c) Finally, you calculate a 95% CI for for μ and come up with (-34, -28). If you test H0: μ = - 27 and use α = .01, will you reject H0? Why or why not?
6) (a) Suppose you test a new medication and reject the null hypothesis (you conclude it works). What kind of error could you have made? (b) Again, you test a new medication and you fail to reject the null hypothesis (you conclude it does not work). What kind of error could you have made?
In: Statistics and Probability
After you run the Regression, answer these questions (type responses in this box):
1. What is the p-value (the significance)?
2. Is the relationship between Hours in Therapy and Depression Inventory Score statistically significant?
3. Do Depressions Scores increase or decrease as a result of having more Hours in Therapy?
| REGRESSION | |
| Hours in Therapy | Depression Inventory Score |
| 9 | 20 |
| 9 | 28 |
| 9 | 20 |
| 9 | 26 |
| 11 | 19 |
| 11 | 15 |
| 13 | 12 |
| 13 | 11 |
| 15 | 10 |
| 15 | 11 |
| 16 | 10 |
| 16 | 8 |
| 17 | 13 |
| 17 | 14 |
| 18 | 10 |
| 18 | 10 |
| 21 | 8 |
| 21 | 9 |
| 21 | 7 |
| 21 | 8 |
| 21 | 8 |
| 21 | 9 |
| 22 | 11 |
| 22 | 10 |
| 22 | 8 |
| 22 | 8 |
| 23 | 10 |
| 23 | 10 |
| 24 | 8 |
| 24 | 10 |
| 25 | 6 |
| 25 | 5 |
| 25 | 4 |
| 25 | 10 |
| 27 | 6 |
| 27 | 6 |
| 31 | 7 |
| 31 | 6 |
| 36 | 10 |
| 36 | 7 |
In: Statistics and Probability
Best Western Gift shop is interested to know how much money, on average, their customers spend each visit in the housewares department. They go back through their records and draw a sample of 1,000 and calculate each customer’s average spending on housewares.
a) Identify the population, sample, parameter, statistic, variable and data for this example.
b) Describe a situation in which you would calculate a parameter rather than a statistic.
Best Western determined that each customer’s spending is normally distributed with a mean of $37 and a standard deviation of $3.40.
c) What percentage of people spend between $20 and $32?
d) Customers get a $6 coupon when they spend over $35. Of the next 200 people that visit the store, how many coupons can they expect to give away?
In: Statistics and Probability
In: Statistics and Probability
Bryant Corporation has provided the following information for the most recent quarter, July 1 through September 30 of 2020. Prepare a multiple-step Income Statement and the Asset section of a classified Balance Sheet, including the correct headings.
|
Specific Account |
Balance |
Specific Account |
Balance |
|
Accounts Payable |
$30 |
Insurance Payable |
$1 |
|
Accounts Receivable |
136 |
Interest Expense |
17 |
|
Accumulated Depreciation (Buildings) |
30 |
Interest Payable |
4 |
|
Accumulated Depreciation (Equipment) |
7 |
Inventory |
75 |
|
Allowance for Doubtful Accounts |
13 |
Land |
145 |
|
Bad Debt Expense |
4 |
Notes Payable (maturity of less than 1 yr) |
40 |
|
Bank Fees Expense |
1 |
Notes Payable (maturity of more than 1 yr) |
55 |
|
Buildings |
170 |
Retained Earnings (beginning) |
120 |
|
Cash |
125 |
Sales Discounts |
15 |
|
Common Stock |
204 |
Sales Returns & Allowances |
5 |
|
Cost of Goods Sold |
375 |
Sales Revenue |
750 |
|
Depreciation Expense |
14 |
Supplies |
6 |
|
Dividends |
17 |
Supplies Expense |
12 |
|
Equipment |
90 |
Unearned Sales Revenue |
27 |
|
Freight-Out |
3 |
Wages Expense |
24 |
|
Gain on Sale of PPE |
9 |
Wages Payable |
31 |
|
Income Tax Expense |
87 |
In: Accounting