Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.25 per case, has not had the market success that managers expected, and the company is considering dropping Bubs.

The product-line income statement for the past 12 months follows:

Table 1

All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent of product revenue. The 5 percent rate is computed based on the most recent year's corporate cost as a percentage of revenue. Data on corporate costs and revenues for the past two years follow:

Table 2

  Assume the fixed corporate overhead is $1,454,000 in each year. None of these fixed costs are specifically traceable to Bubbs.

Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given above, Mr. Andre provides you with the following data on product costs for Bubs:

Table 3

Table 4 - Regression Analysis of Table 3 Data

Adjusted R-squared               0.957

QUESTION: Assume the variable allocated corporate costs are $0.192 per case of Bubbs. Given methods used to compile Table 1, what would the price per case of Bubbs have to be for the product line margin to break-even. Assume no change in the number of units sold. You should apply allocated corporate overhead at the rate used by Lukes. Round to the nearest 0.001 per case.

A new accountant at Sheridan Ltée is trying to identify which of the following amounts should be reported as cash and cash equivalents in the April 30 year-end statement of financial position:

What amount should Sheridan report as its cash balance at April 30?

1. The benefits of market segmentation includes

A. To search attractive marketing options

B. To determine the product mix

C. To select the target market

D. All of the above

E. None of the above

2. The objective of market segmentation includes

A. To find out the new markets

B. To make real customers to the prospects customers of the company

C. To make customer-oriented to marketing activities of the firm

D. All of the above

E. None of the above

3. Which is the basis of market segmentation as per Philip Kotler?

A. Psychographic basis

B. Behavioural Basis

C. Geographical basis

D. Demographic basis

E. All of the above

4. Why will firms adopt corporate environmental initiatives?

A.Competitiveness

B.Ecological concern

C.All of the above

5. A firm, which tied up with Environmental Defense Fund to minimize its waste and to use recycled packaging?

A.Coke

B.McDonalds

C.Pepsi

6. Which is not an environmental group?

A.Greenpeace

B.Haribon

C.None of the above

7. A growing worldwide consciousness particularly in developed countries of the need to promote the environment is known as

A.Societal marketing

B.Green marketing

C.Relationship marketing

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with an allowance for sales returns of $380,000. During 2018, Halifax sold merchandise on account for $12,300,000. This merchandise cost Halifax $8,610,000 (70% of selling prices). Also during the year, customers returned $603,000 in sales for credit. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance.
2. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?

Journal Entry Worksheet

1.Record the actual sales returns.

2.Record the return of merchandise to stock.

3.Record the year-end adjusting entry for estimated returns.

4.Record the adjusting entry for the estimated return of merchandise to inventory.

You meet with Elizabeth and discuss the expected revenue and costs related to the Cookie Shop that she is planning on opening. Elizabeth has done her marketing research of customer demand and what customers are willing to pay for a dozen cookies. Elizabeth provides the Revenue and Cost information below and states you that she thinks that the shop will only be able to sell 1,000 dozen of cookies in a month based on this data.

Quantity of cookies sold (in dozens) 1,000

Selling price for a dozen cookies $17.50

Variable Cost to bake a dozen cookies $9.75

Monthly Fixed Expenses of the shop

Rent for the shop $3,000.00

Lease cost for baking equipment $1,200.00

Utilities and Maintenance $500.00

Wages paid to 1 part-time employee $1,000.00

Total Monthly Fixed Expenses $5,700.00

Elizabeth said that she will be quitting her job to work full-time in the Cookie Shop. She says that her monthly living expenses total $4,000 per month (including payments for her college loans, car payment, apartment rent and food and other living expenses). So she needs you to help her determine how many dozens of cookies will she have to sell in a month to have the Cookie Shop make $4,000 in Net income.

Monthly Target Profit $4,000.00

You discuss with Elizabeth the following 3 options that could be implemented

Option # 1 Increase the selling price of a dozen cookies by 20%. This will casue a 10% decrease in the monthly unit (dozen) sales.

# 2 Increase the selling price of a dozen cookies by 20% and spend $750 monthly for a social media marketing campaign. This is expected to keep the monthly unit sales at 1,000 dozen

# 3 Move home and live with her parents and save $2,000 per month in living expenses. This would allow the monthly target income to be reduced from $4,000 to $2,000. Use the original revenue and cost assumptions.

1. What is the momentum of a photon of light that has a frequency of 2.9 x 10^14 Hz?

a) 1.5 x 10^-28 kg m/s

b) 2.1 x 10^-28 kg m/s

c) 4.4 x 10^-28 kg m/s

d) 6.3 x 10^-28 kg m/s

e) 6.2 x 10^-28 kg m/s

ANSWER E

2. What is the momentum of a photon of light that has a wavelength of 480nm?

a) 1.1 x 10^-27 kg m/s

b) 2.2 x 10^-27 kg m/s

c) 1.8 x 10^-27 kg m/s

d) 1.4 x 10^-27 kg m/s

e) 2.0 x 10^-27 kg m/s

ANSWER: D

5. Felix Stamp owns a car parts dealership. Most of his payments from customers are made in cash and by direct deposit to the bank. He has few debtors. The cash book page for the month of March 2019 has been mistakenly removed. He has to rely on his source documents, ledgers and bank statement to recreate certain accounts.

i. Name a source document that Felix Stamp would use to draw up his Petty Cash Book.

(1 mark)

ii. Felix Stamp keeps a petty cash imprest of $200 for the business. The cashier reports that there was an unspent balance of $47.10 in the Petty Cash Book on 01 March 2019.

Calculate the amount needed to restore the imprest.

(2 mark)

iii. The cashier produces the following list of small expenditures for the month of March 2019.

March Details $

3 Postage stamps 12.75

6 Messenger's taxi fare 9.65

9 Mop and broom 25.60

13 Envelopes 14.00

17 Cleaning supplies 18.85

22 Copy paper 60.00

27 Glue sticks 7.50

30 Messenger's taxi fare 9.65

Draw up Felix Stamp’s Petty Cash Book for the month of March 2019 using the following headings: Postage and Stationary, Cleaning Expenses and Travel Expenses. Balance off the Petty Cash Book and prepare for the beginning of the next month.

Greg Norman is the auditor in charge of the Rogers Pharmaceutical Company audit. In assessing the internal controls for the company, Greg finds that the company bills customers and receives payments at three offices in three separate states using three different and incompatible software systems for tracking payments. Rogers’s terms of sale varies with the customer and varies from 30 days to 90 days. Open invoices are aged based on when they were booked to the receivables, but cash, chargebacks, or rebates are aged based on when they were applied to the account. Thus, a credit could be posted to the customer’s account when it was received, but the related invoice(s) remains open as a receivable and continues to age. Chargebacks are significant and linked to batch of product rather than invoice. Most similar companies have credit limits or credit checks but Rogers’s does not because all wholesalers are board certified M.D.’s, like the company’s founder.

Rogers’s total accounts receivable was $25,276,025.

Rogers’s total accounts receivable past due over 61 days was $17,434,500.

Rogers’s past top-five wholesalers had accounts receivable of $13,457,516.

Rogers’s top-five wholesale customers had $5,428,850 past due over 61 days.

Rogers’s allowance for doubtful accounts of $266,000 did not include any estimates for the top-five wholesale customers because it was management’s belief at the time that the top-five wholesalers did not present a collection risk.

Required:

Based on these control issues and findings, explain some of the most likely sources of misstatement that exist.

Please solve all. I don't have any more questions left. I will give thumbs up.

For Online Textbook Store & Payment System, please identify each of the requirements as a functional requirement/property or non-functional requirement/property. For every non-functional property/requirement, please add a remark to explain why.

10. The bookstore manager will be able to access the system in order to view sales summary reports.

11. Payments processed through the system are electronically transferred into the store’s bank account.

12. Bank sends monthly statements of account activity to the bookstore.

13. The system must be available for access 24/7.

14. Customers can select a preferred web browser to access the system.

15. A back up will be perform on the customer information and order information on a weekly basis.

16. Customers are not allowed to share their accounts with others.

17. Customers can send their comments via email to the company.

18. Customers can call Shipping Department to track their orders.

19. Customer records will be stored on a remote database server.

20. For security reasons, the maximum session duration cannot exceed 5 minutes.

I have (3) questions:

1. What exactly is the Cost-Benefit Principle, and how does it apply to ABC?

2. Is JIT just about the reduction of inventory? Please Explain.

3. Indicate which of the following answers to the statement below represents the best choice, then support your view. Indicate why one of the other choices is incorrect. Which of the following is classified as an inventory shortage cost?

a. Purchase order preparation.

b. Production disruption.

c. Lost sales and lost customers.

d. Spoilage.

e. Production disruption, lost sales, and lost customers.

f. The cost of Justin Bieber's latest iTunes single.