In: Economics
On June 15, 2018, Sanderson Construction entered into a
long-term construction contract to build a baseball stadium in
Washington, D.C., for $260 million. The expected completion date is
April 1, 2020, just in time for the 2020 baseball season. Costs
incurred and estimated costs to complete at year-end for the life
of the contract are as follows ($ in millions):
| 2018 | 2019 | 2020 | |||||||
| Costs incurred during the year | $ | 60 | $ | 80 | $ | 65 | |||
| Estimated costs to complete as of December 31 | 140 | 60 | — | ||||||
Required:
1. Compute the revenue and gross profit will
Sanderson report in its 2018, 2019, and 2020 income statements
related to this contract assuming Sanderson recognizes revenue over
time according to percentage of completion.
2. Compute the revenue and gross profit will
Sanderson report in its 2018, 2019, and 2020 income statements
related to this contract assuming this project does not qualify for
revenue recognition over time.
3. Suppose the estimated costs to complete at the
end of 2019 are $110 million instead of $60 million. Compute the
amount of revenue and gross profit or loss to be recognized in 2019
using the percentage of completion method.
Required 1
Required 2
Required 3
Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)
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2.
Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.)
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3.
Suppose the estimated costs to complete at the end of 2019 are $110 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. (Enter your answers in millions. Use percentages as calculated and rounded in the table below to arrive at your final answer.)
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In: Accounting
Determine the appropriate account to for the journal entry for the month of May by placing the appropriate identification number(s) in the debit o credit column provided for each item. The company uses a perpetual inventory system.
|
1. |
Cash |
5. |
Supplies |
9. |
Sales Discounts |
|
2. |
Accounts Receivable |
6. |
Land |
10. |
Sales Revenue |
|
3. |
Notes Receivable |
7. |
Accounts Payable |
11. |
Cost of Goods Sold |
|
4. |
Inventory |
8. |
Sales Returns and Allowances |
12. |
Freight-Out |
Group of answer choices
Sold merchandise with a cost of $250 for cash of $450, terms net 30 The account to be credited for $450 is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Sold merchandise with a cost of $250 for cash of $450, terms net 30. The account to be credited for $250 is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Purchased merchandise from Supplier, Inc. on account for $2,000, terms 2/10, n/30. The account to be debited is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Returned $500 of merchandise that had been purchased from Supplier, Inc. The account to be credited is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Sold merchandise costing $550 to Bike World for $900 on account, terms 2/10, n/30. Bike World will pay $40 freight costs per the shipping terms. The account to be debited for $550 is :
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Accepted a return of merchandise from Bike World. Granted a credit on account of $100. The account to be debited for $100 is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Purchased merchandise from AB Supply on account for $1,600; terms 1/10, n/30 The account to be credited for $1,600 is:
[ Choose ] Inventory Sales Returns and Allowances Cost of Goods Sold Accounts Payable Cash Sales Revenue
Paid freight of $90 on the shipment from Supplier, Inc. per the shipping terms of the purchase. The account to be credited for $90 is:
In: Accounting
Bobby & Brown (BB) Plc is a multinational corporation. The
company has a business division, BB Tyres, that manufactures tyres
for motorcycles and cars. There is an automobile division of the
company, BB Automobile, that manufactures cars.
BB Automobile purchase tyres for its automobiles from an outside
vendor. However, at the end of the current month, the contract with
the vendor for the tyres of vans will expire. The senior management
of BB Plc feels that the automobile division of the company should
purchase tyres for vans from its own tyre division rather than
renewing the contract with the outside vendor. The managers of both
the divisions are also interested in having intra-company
transactions as it will be in the best interests of both the
divisions as well as the company as a whole.
The tyres manufactured by BB Tyres are of standard size. BB
Automobile needs 18,500 tyres per month to manufacture vans. The
quality of the tyres supplied by the outside vendor and the ones
manufactured by BB Tyres are similar. BB Automobile currently pays
$75.00 to the outside vendor for a tyre of van. The Tyres division
of BB Plc currently sells the tyres to its existing customers at
$78.00 each. The production capacity of the division is 55,000 van
tyres per month. The variable cost to produce one van tyre is
$40.00. The fixed cost incurred in the manufacture of van tyres is
$105,000 per month.
Required:
1. a. Determine the acceptable range of transfer price if BB Tyres
sells 39,500 van tyres to its external customers per month. (Round
your answer to 2 decimal places.)
b. If BB Automobile proposes to buy van tyres at $50.00 each from
BB Tyres, would the management of BB Tyres be interested in the
proposal?
(1 mark)
2. a. BB Automobile proposes to buy van tyres at $50.00 each from
BB Tyres. Determine the acceptable range of transfer price if BB
Tyres sells 47,500 van tyres to its external customers per mont
In: Accounting
Bobby & Brown (BB) Plc is a multinational corporation. The company has a business division, BB Tyres, that manufactures tyres for motorcycles and cars. There is an automobile division of the company, BB Automobile, that manufactures cars.
BB Automobile purchase tyres for its automobiles from an outside vendor. However, at the end of the current month, the contract with the vendor for the tyres of vans will expire. The senior management of BB Plc feels that the automobile division of the company should purchase tyres for vans from its own tyre division rather than renewing the contract with the outside vendor. The managers of both the divisions are also interested in having intra-company transactions as it will be in the best interests of both the divisions as well as the company as a whole.
The tyres manufactured by BB Tyres are of standard size. BB Automobile needs 18,500 tyres per month to manufacture vans. The quality of the tyres supplied by the outside vendor and the ones manufactured by BB Tyres are similar. BB Automobile currently pays $75.00 to the outside vendor for a tyre of van. The Tyres division of BB Plc currently sells the tyres to its existing customers at $78.00 each. The production capacity of the division is 55,000 van tyres per month. The variable cost to produce one van tyre is $40.00. The fixed cost incurred in the manufacture of van tyres is $105,000 per month.
Required:
b. If BB Automobile proposes to buy van tyres at $50.00 each from BB Tyres, would the management of BB Tyres be interested in the proposal?
(1 mark)
In: Accounting
Bobby & Brown (BB) Plc is a multinational corporation. The company has a business division, BB Tyres, that manufactures tyres for motorcycles and cars. There is an automobile division of the company, BB Automobile, that manufactures cars.
BB Automobile purchase tyres for its automobiles from an outside vendor. However, at the end of the current month, the contract with the vendor for the tyres of vans will expire. The senior management of BB Plc feels that the automobile division of the company should purchase tyres for vans from its own tyre division rather than renewing the contract with the outside vendor. The managers of both the divisions are also interested in having intra-company transactions as it will be in the best interests of both the divisions as well as the company as a whole.
The tyres manufactured by BB Tyres are of standard size. BB Automobile needs 18,500 tyres per month to manufacture vans. The quality of the tyres supplied by the outside vendor and the ones manufactured by BB Tyres are similar. BB Automobile currently pays $75.00 to the outside vendor for a tyre of van. The Tyres division of BB Plc currently sells the tyres to its existing customers at $78.00 each. The production capacity of the division is 55,000 van tyres per month. The variable cost to produce one van tyre is $40.00. The fixed cost incurred in the manufacture of van tyres is $105,000 per month.
Required:
b. If BB Automobile proposes to buy van tyres at $50.00 each from BB Tyres, would the management of BB Tyres be interested in the proposal?
(1 mark)
In: Accounting
In: Operations Management
From the real international market, select a company of your choice wishing to start its activities in Saudi Arabia. The Company hired you as Marketing Manager of Saudi Arabian Region. You have to establish a marketing department starting from the Analysis of the market, formulate overall marketing goals, objectives, strategies, and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.
Write a Marketing Plan considering the following points (2x5=10 Marks)
1. Introduction,
Goals and Objectives To introduce this section you should include the "mission statement" of the business; an idea of what its goals are for customers, clients, employees and the consumer.
a. Introduction about the business.
b. Business vision and mission
c. Business objective.
d. Products and services offered
2. Environmental Analysis
Conduct an environmental analysis that looks at and comments on your local area and your network of business contacts, competitors and customers.
3. Target Market Analysis
Identify the target market, describing how the company will meet the needs of the consumer better than the competition does.
4. SWOT Analysis
Conduct a SWOT analysis for your chosen company based on your research.
Strengths: List the strengths of the business approach;
Weaknesses: Describe the areas of weakness in the company's operations;
Opportunities: Examine factors that may improve the business's chances of success;
Threats: List the external threats to the business' success.
5. Marketing Mix (4 P’s ) Analysis Describe each of the 4Ps of your chosen company.
Product or Service Identify the product or service by what it is, who will buy it, how much they will pay for it and how much it will cost for the company to produce it, why a consumer demand exists for your product, and where the product sits in comparison to similar products/services now available.
Place Identify the location of the business, why it is located there (strategic, competitive, economic objectives), the expected methods of distribution, and timing objectives.
Promotion Describe the type of promotional methods that will be used. Identify techniques such as word of mouth, personal selling, direct marketing, sales promotion etc. television, radio, social media and newspaper ads.
Price The prices of the products or services that reflects the overall company strategy. Should be competitive as well as a reflection of the quality, costs and profit margin.
In: Operations Management
Assignment No.: 3
Marketing Plan
From the real international market, select a company of your choice wishing to start its activities in Saudi Arabia. The Company hired you as Marketing Manager of Saudi Arabian Region.
You have to establish a marketing department starting from the Analysis of the market, formulate overall marketing goals, objectives, strategies, and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.
Write a Marketing Plan considering the following points (2x5=10 Marks)
To introduce this section you should include the "mission statement" of the business; an idea of what its goals are for customers, clients, employees and the consumer.
Conduct an environmental analysis that looks at and comments on your local area and your network of business contacts, competitors and customers.
Identify the target market, describing how the company will meet the needs of the consumer better than the competition does.
Conduct a SWOT analysis for your chosen company based on your research.
Strengths: List the strengths of the business approach;
Weaknesses: Describe the areas of weakness in the company's operations;
Opportunities: Examine factors that may improve the business's chances of success;
Threats: List the external threats to the business' success.
Describe each of the 4Ps of your chosen company.
Product or Service
Identify the product or service by what it is, who will buy it, how much they will pay for it and how much it will cost for the company to produce it, why a consumer demand exists for your product, and where the product sits in comparison to similar products/services now available.
Place
Identify the location of the business, why it is located there (strategic, competitive, economic objectives), the expected methods of distribution, and timing objectives.
Promotion
Describe the type of promotional methods that will be used. Identify techniques such as word of mouth, personal selling, direct marketing, sales promotion etc. television, radio, social media and newspaper ads.
Price
The prices of the products or services that reflects the overall company strategy. Should be competitive as well as a reflection of the quality, costs and profit margin.
In: Operations Management
Issue 4: Design a Guarantee Policy
1515 unread replies.1515 replies.
A company developed a new product – Toner Cartridge. In order to attract more customers to purchase the new product, the manager of the company designs a guarantee policy. If a customer purchases a toner cartridge that does not reach the guaranteed pages, the customer can get 50% of the money back. The manager does not want to lose money. However, if the guaranteed pages were set too low, the guarantee policy will not be attractive to customers at all. From actual tests with the toner cartridges, the company estimated that the mean of printing pages is 30,000 pages and the standard deviation is 1500 pages. To determine guaranteed pages, the manager just simply sets 28,500 pages as guaranteed pages. In your opinion, does the way the manager determines the guaranteed pages make any sense? If you think that it does, explain your reason why. If not, explain your reason why not, and describe what you would do if you were the manager. Discuss and explain your reasons. You must provide your statistical analysis and reasons. The minimum requirement for your discussion is 150 words,
In: Statistics and Probability