Problem 6-2AA Periodic: Alternative cost flows LO P3

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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 80 units from beginning inventory and 365 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 145 units from the March 25 purchase.

Problem 6-2AA Part 3

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

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.)

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 40 units from beginning inventory and 430 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 170 units from the March 25 purchase.

Required.
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

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.)

An increase of tariff on steel in the US will increase domestic steel production and will reduce the quantity of steel imports in the US. Domestic producers of steel in the US will be better off, and domestic consumers of steel in the US will be worse off. With a tariff, the sum of the producers’ and the consumers’ surplus in the US steel market will decrease by an amount referred to as a deadweight loss. Is it true? Please explain, why?

6. You are interested in an International Portfolio made up of US and Canadian securities. The return on US is 15% and the return on Canada is 20%. The standard deviation of returns for US is 30% while that of Canada is 20%. If the correlation between US and Canada is -1, obtain the relevant weights for US and Canada to construct an international portfolio with zero risk. Compute the expected return on such a portfolio.

1. A university was studied last fall to see if male students studied for a different amount of time than females during the week. The following data was collected and now, we need to be able to perform analysis on this data in order to help this university understand their student population and what changes they may be able to put into effect.

a) Perform an appropriate significance test and interpret it.

III.    Texas Southern University ‘s housing department has collected the following information for the

          Past 8 semesters.

a)Compute the regression equation.

b)Interpret a and b in the context of this problem.

Quintiles Transnational: Dennis Gillings founded Quntiles Transnational in 1982 when he realized that drug companies were great at inventing new medicines but not particularly good at analyzing the vast amounts of data that came out of clinical trials. He thought drug testing should be broken down into a series of standardized steps and he signed up a network of doctors interesting in enrolling patients in clinical trials. In the ten years leading up to 2010, Quintiles had conducted 4,700 trials on 2.7 million patients.

Quintiles also established a large contract sales organization (CSO) to support its pharmaceutical company clients. Large pharmaceutical companies, faced with cost pressures as well as the costs of maintaining their own sales forces, have increasingly turned to CSOs like the Innovex division of Quintiles, PDI Inc., or inVentive Health to provide variable cost “flex reps” as an alternative to adding the fixed cost they would incur if they added to their own sales forces. CSOs are widely used in therapeutic areas that require somewhat less scientific knowledge, like respiratory, dermatology, and lifestyle. The growth rate in contract sales and marketing was projected at 35% to 2015.

Question: Assume you are the CEO of a pharmaceutical company. Do you think you might use the CSO capabilities of Quintiles? Why or why not? 200 words or more

During most of the 1800s the US government only protected copyrights for US citizens. In particular, books written by British authors, which were very popular in the US, could be printed and sold by US publishers without paying royalties to British authors. Because the US did not enforce copyright for British authors, the United Kingdom did not enforce copyright for US authors, meaning that British publishers could print and sell books by US authors without paying any royalties to them. It was well understood, however, that if the US government would begin to enforce copyright for British authors, the British would reciprocate, and enforce copyright for US authors.

Consider the position of a US Congressman in the late 1800s, considering a bill that would extend copyright protection to British authors (and gain British protection for US authors in return). Assume that his goal is to improve the overall welfare of US citizens. He understands that extending copyright to works of British authors will raise the price that US citizens have to pay for those books. He also understands that the purpose of copyright is to encourage the production of creative works (in this case, works of literature as well as nonfiction scholarship, like science, philosophy and history), by making it more lucrative to be an author of creative works. So, he has to consider the marginal impact of this bill on the supply of new books by English language authors, both British and American.

a. Below are two facts. Say whether each one of these facts would make him more or less likely to vote for the bill, and explain why. (Think in terms of how each of these facts affects the marginal benefits to US citizens and/or the marginal costs to US citizens of a policy honoring British copyrights, and getting the British to honor US copyrights in return.)

(i). Works by British authors are very popular in the US, and US scientists, engineers, and school teachers rely heavily on the scholarly works produced by the British.

(ii). American literature has never been very popular in Britain, and the US, as a young and largely agrarian nation, does not produce much research.

b. A group of American authors of fiction sends a letter to the Congressman, trying to affect his vote. Would you expect this group to support or oppose the bill? Explain (Hint: Books by British authors are notably cheaper at US bookstores than books by American authors).