The National Football League (NFL) records a variety of performance data for individuals and teams. To investigate the importance of passing on the percentage of games won by a team, the following data show the conference (Conf), average number of passing yards per attempt (Yds/Att), the number of interceptions thrown per attempt (Int/Att), and the percentage of games won (Win%) for a random sample of 16 NFL teams for the 2011 season (NFL web site, February 12, 2012).

Click on the datafile logo to reference the data.

Let x₁ represent Yds/Att.
Let x₂ represent Int/Att.

The National Football League (NFL) records a variety of performance data for individuals and teams. To investigate the importance of passing on the percentage of games won by a team, the following data show the conference (Conf), average number of passing yards per attempt (Yds/Att), the number of interceptions thrown per attempt (Int/Att), and the percentage of games won (Win%) for a random sample of 16 NFL teams for the 2011 season (NFL web site, February 12, 2012).

Click on the datafile logo to reference the data.

Let x₁ represent Yds/Att.
Let x₂ represent Int/Att.

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Pearson Company sold 5,000 units for $50 each. Variable costs were $28 per unit and total fixed expenses were $20,350.

What is Pearson's total contribution margin?

What is the breakeven in terms of units for Pearson?

What is Pearson's net income?

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Ava’s Creations sells two products. A and B. The weighted average per unit is $40 and Ava’s fixed costs are $24,800. The sales mix is 30% for A and 70% for B.

How many units of Product A must be sold by Ava to break-even?

How many units of Product B must be sold by Ava to break-even?

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JS Corp. has a selling price of $34 variable costs of $14 per unit, and fixed costs of $16,290. JS net income is $36,684.

How many units did JS sell?

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Parker Co has sales of $298,200, a contribution margin of $111,000 and net income of $60,850.

Parker’s degree of operating leverage is: ________________ (Round your answer 2 decimal places.)

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Using the high low method, Hadley Company calculated the variable cost as $4.7 per unit. The high level of the activity was 2,770 units and $36,820 of total cost.

Total fixed costs equal $_______ (Enter your answer as a whole number.)

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Joe uses the high-low method of estimating costs. Joe had total costs of $13,841 at its lowest level of activity, when 1,583 units were sold. When, at its highest level of activity, sales equaled 7,423 units, total costs were $32,379.

Joe would estimate fixed costs as: _______ (Give your answer as a whole number but do not round your calculations until you get to the final answer.)

Problem 5-3A Perpetual: Alternative cost flows LO P1

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions

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. For specific identification, units sold consist of 600 units from beginning inventory, 200 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 365 from the September 5 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.)

5. The company’s manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

• Weighted Average

• FIFO

• Specific Identification

• LIFO

Problem 5-3A Perpetual: Alternative cost flows LO P1

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions

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. For specific identification, units sold consist of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 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.)

5. The company’s manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

• LIFO

• Weighted Average

• Specific Identification

• FIFO

Use the Bureau of Labor Statistics website to search for income data on the occupation of 15-1212 Information Security Analysts. The BLS has wage information for hundreds of jobs and data can also be found by state.

Once you arrive at the site, complete the following steps to gather the data you need to answer the questions.

Step 1

• Search for information on the occupation (15-1212 Information Security Analysts) by clicking on national wage data 800 occupations. This will take you to the Occupational Employment Statistics page.
• Scroll to the bottom of that page for a table listing the major and sub-job categories. Note in the first column there is an occupation code. For example, accountants and auditors have the code 13-2011 and are listed under banking and financial operations.
• Click on the job title to find earnings information. There you will find mean wages as well as percentiles and the 5-number summary.
• Compare the mean and median pays. For example, the mean pay for accountants was $78,800 and the median was $70,500.
• Record the information on percentiles, the 5-number summary, the mean and the median.

Step 2

Include the following in your discussion post:

• Discuss your interpretation of the statistics you recorded in Part 1.
  • Percentiles
  • Mean
  • Median
• How different are the salaries shown in the map of states?
  • What is the range for your state?
  • Would you move to another state based on this data?
  • What other statistics would you want to know before making that decision?
• What effect do the lowest paid and highest paid states have on the calculation of the mean and median for the United States?
• Suppose you were asked by a potential employer to request a salary. Which is the best measure to use to find “average” earnings for your occupation? Explain your answer.

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions

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. For specific identification, units sold consist of 600 units from beginning inventory, 260 from the February 10 purchase, 150 from the March 13 purchase, 150 from the August 21 purchase, and 385 from the September 5 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.)

5. The company’s manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

• Specific Identification

• FIFO

• Weighted Average

• LIFO

Question 3 Part A XYZ Windows Ltd is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2020 expenditure on the project is as follows: Research $235,000 Development $500,000 The window is expected to return profits of $70,000 per year for the 10 years commencing 1 July 2020. Assuming the company uses a straight-line method amortisation. This company uses a discount rate of 8 per cent. Required: i) How much research and development cost should be expensed in the year to 30 June 2020? ii) How much development expenditure should be amortised in the year to 30 June 2021?

Part B An assistant of yours has encountered the following matter during the preparation of the draft financial statements of XYZ Ltd for the year ending 30 June 2020. He /She has given an explanation of his/her treatment of the item. “XYZ Ltd management spent $200,000 sending its staff on training courses during the year. This has already led to an improvement in the company’s efficiency and resulted in cost savings. The organiser of the course has stated that the benefits from the training should last for a minimum of four years. The assistant has therefore treated the cost of the training as an intangible asset and charged six months’ amortisation based on the average date during the year on which the training courses were completed.” Required: Comment on the assistant’s treatment of them in the financial statement for the year ended 30 June 2020 and advise him how they should be treated under AASB 138 Intangible Assets.

Part C If an organisation is constructing a building, and that building will take a number of years to complete, can the organisation recognise revenue throughout the contract, or does the construction-based organisation have to wait until project completion before it recognises the revenue associated with the construction contract? Discuss this statement in accordance to AASB 15.