#2

REVISED PROBLEM 13-42

ACC 650 - Management Accounting

Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions.
The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI.
Last year, the company as a whole produced a 13 percent return on its investment.
During the past week, management of the company’s Northeast Division was approached about the
possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is
acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the
Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an
additional $275,000 of invested capital would be needed.

REQUIRED:

2. What is the likely reaction of divisional management toward the acquisition? Why?

. Put yourself in the shoes of the CEO of Mattel in 2008. How would you handle the issues Mattel faced in 2008 as it pertains to the product recalls?

Two important issues in corporate governance are (1) the rules that cover firing a CEO and (2) board members are compensated appropriately. True False

How does the topic executive compensation inequality relate to the American International Group (AIG) Bonus Fiasco? Define CEO compensation inequality?

For the shareholders of target firms with CEO getting close to retirement, do they suffer lower takeover premium and deal announcement returns in general? Explain.

Imagine you are CEO of a local hospital. Which policies and procedures would you develop and deploy in order to facilitate superior strategy execution?

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

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, the March 9 sale consisted of 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase. (Round weighted average cost per unit to 2 decimal places.)

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase. (Round weighted average cost per unit to two decimals.)

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

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, the March 9 sale consisted of 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

5-1A Perpetual: Alternative cost flows LO P1

[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.

Problem 5-1A Part 3

1. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 120 units from beginning inventory and 250 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 140 units from the March 25 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 120 units from beginning inventory and 250 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 140 units from the March 25 purchase

1.)

The time college students spend on the internet follows a Normal distribution. At Johnson University, the mean time is 5.5 hours per day with a standard deviation of 1.1 hours per day.

1. If 100 Johnson University students are randomly selected, what is the probability that the average time spent on the internet will be more than 5.8 hours per day?
   Round to 4 places.  
   
2. If 100 Johnson University students are randomly selected, what is the probability that the average time spent on the internet is between 5.3 hour and 5.8 hours?
   Round to 4 places  
   
3. If 100 Johnson University students are randomly selected, what mean number of hours on the internet per day separated the bottom 33% and top 67% of internet usage for college students?  
   hours per day. Round to 2 places.

2.)

A manufacturer knows that their items have a normally distributed lifespan, with a mean of 10.1 years, and standard deviation of 0.5 years.

If 19 items are picked at random, 3% of the time their mean life will be less than how many years?

Give your answer to one decimal place.