Metlock Company sells one product. Presented below is information for January for Metlock Company.

Jan. 1 Inventory 110 units at $5 each

Jan. 4 Sale 87 units at $8 each

Jan. 11 Purchase 156 units at $6 each

Jan. 13 Sale 126 units at $9 each

Jan. 20 Purchase 155 units at $6 each

Jan.27 Sale 99 units at $10 each

Metlock uses the FIFO cost flow assumption. All purchases and sales are on account.

1. Assume Metlock uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 109 units.

2. Compute gross profit using the periodic system.

3. Assume Metlock uses a perpetual system. Prepare all necessary journal entries.

4. Compute gross profit using the perpetual system.

Problem 6-63A
Inventory Costing Methods

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:

Anderson's uses a perpetual inventory system. All purchases and sales were for cash.

Required:

1. Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.

2. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)

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Incorrect

3. Prepare the journal entries to record these transactions, assuming Anderson's chooses to use the FIFO method. If required, round your answers to the nearest cent.

In 2021, 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 2023. Information related to the contract is as follows:

3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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.

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.

3.

Complete the information required below to prepare a partial balance sheet for 2021 and 2022 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 using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)

5.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)

Warisan Jambu Manufacturer Sdn Bhd

Getting an idea to commercialise the iconic local cuisine in Pekan, Pahang – murtabak (beef stuffed pancake), has initiated the owner of Warisan Jambu Manufacturer Sdn Bhd, Mr Shah to venture into this food-making business. Mr Shah has started his food business since 2002 as an eatery that serving his murtabak products for customers who came either for dining in or took away the mouth-watering local cuisine. After 15 years delved into the food industry, he attempted to transform his current business model (runs a restaurant business) into a frozen food-based business. He has invested a substantial amount of capital to meet all the relevant authorities’ requirements that fit to his business model. Among the apparent challenges faced by Mr Shah are the financial constraints and lack of high skill workers in order to meet the increasing demand of customers mainly in the East Coast region. The company targets to increase its revenue by 25% yearly for the next three years ahead to earn a satisfactory amount of profit. Therefore, Mr Shah makes his effort to identify any business support services from government and other related agencies that could facilitate his business in the future.

Required.

(a) In today’s challenging business trends, Mr Shah should develop marketing strategies that allow him to act quickly, take advantage of opportunities before competitors do and respond to business threats before significant damage is done to the business.

Recommend any TWO (2) promotional tools of social media and its advantages in promoting his products to the target marketplace.

Subject: Entrepreneur

9.

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below:

The following balance sheet information also is available:

In addition, the following transactions took place during the year:

Common stock was issued for $120,000 in cash.

Long-term investments were sold for $60,000 in cash. The original cost of the investments also was $60,000.

$90,000 in cash dividends was paid to shareholders.

The company has no outstanding debt, other than those payables listed above.

Operating expenses include $40,000 in depreciation expense.

Required:
1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities.

2. Prepare the cash flows from operating activities section of Diversified’s 2018 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

QUESTION 4

1. Part IV:
   
   Background       
   On January 10, KH sold a mixer it purchased from MU for $80 cash and delivered it to a customer. KH has a 45-day return policy under which a customer can exchange a product for another product of the same type, quality, condition and price. The exchange policy requires that all returned products must be like new. Based on extensive historical experience, KH estimates that 2% of its products will be exchanged by customers for another product of the same price, condition, quality and type. KH estimates the cost of recovering any products will be insignificant. KH does not record any potential volume discounts until they are earned.  
   Requirements
   ►      Prepare a detailed explanation of each of the five steps of revenue recognition. Record all initial accounting entries for MU for January 10 based on guidance on revenue recognition in ASC 606. Include references to the guidance to support your proposed accounting. Show any calculations you make to support your journal entries.
   

A story in the Wall Street Journal reveals that “Tall Workers Earn More Money”. Ron, the president of a company, wants to know whether the relationship between salary and height exists in his own company, and obtains the following data from the human resources department.

a. Calculate the correlation between salary and height, and describe the relationship between these two variables.

b. How much of the variability in salary can be accounted for by height?

c. Is there a significant correlation between salary and height?

During the 1990’s and 2000’s many public intellectuals, including economists, predicted that specialization according to comparative advantage would increase the standard of living both in the United States and in the countries with which it traded.

Discuss the benefits and costs of trade with China at the individual and national levels.