Question 1
The following transactions for Carleton Company occurred during January 2016:
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Jan. |
1 |
Purchased a two-year insurance policy for cash, $8,400 |
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4 |
Paid utilities bill received December 2015, $450 |
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9 |
Performed a service on account, $1,200 |
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16 |
Paid bimonthly salary to employees, $2,700 |
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21 |
Received $800 from a customer on account |
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25 |
Received $600 from January 9 transaction |
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30 |
Prepared the adjusting entry for insurance from January 1 transaction |
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30 |
Accrued wages of $2,750 |
Show the total amount of revenue and expense recognized under both the accrual basis and cash basis of accounting.
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Accrual Basis |
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Revenue Total |
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Expense Total |
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Cash Basis |
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Revenue Total |
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Expense Total |
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In: Accounting
Based upon market research, the Hawthorne Company has determined
that consumers are willing to purchase 139 units of their portable
media player each week when the price is set at $34.50 per unit. At
a unit price of $10.40, consumers are willing to buy 380 units per
week.
(a) Determine the weekly demand equation for this product,
assuming price, p, and quantity, x, are linearly
related.
p =
(b) Determine the weekly revenue function.
R(x) =
(c) Determine the number of units consumers will demand weekly when
the price is $30.30 per portable media player.
units
(d) Determine the number of units consumers will demand weekly when
the revenue is maximized.
units
(e) Determine the price of each unit when the revenue is
maximized.
dollars
In: Math
Based upon market research, the Hawthorne Company has determined
that consumers are willing to purchase 132 units of their portable
media player each week when the price is set at $132.00 per unit.
At a unit price of $40.50, consumers are willing to buy 315 units
per week.
(a) Determine the weekly demand equation for this product,
assuming price, p, and quantity, x, are linearly
related.
p =
(b) Determine the weekly revenue function.
R(x) =
(c) Determine the number of units consumers will demand weekly when
the price is $94.50 per portable media player.
units
(d) Determine the number of units consumers will demand weekly when
the revenue is maximized.
units
(e) Determine the price of each unit when the revenue is
maximized.
dollars
In: Advanced Math
In 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
|
In: Accounting
***Basic company facts: Name of the firm: Britannia Category of the firm: FMCG State of incorporation: Kolkata, West Bengal, India. Year of foundation: 1918 Primary & secondary SIC codes: N/A Independent auditor: BSR & Co Shares listed in: Bangalore stock exchange, national stock exchange, OTCEI, madras stock exchange, Delhi stock exchange, MCX stock exchange etc. Stock ticker symbol: BRITANNIA
1.)
Summarize your firm’s margins that you computed in No. 6 for each of the last three years.
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Margins |
Most Recent Year |
Next Most Recent Year |
Second Most Recent Year |
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Gross profit margin % (gross margin/sales revenue |
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Operating profit margin % (Operating income/sales revenue |
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Net profit margin % Net income/sales revenue |
In: Finance
[The following information applies to the questions
displayed below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,072,000 | $ | 2,738,000 | $ | 2,849,000 | |||
| Estimated costs to complete as of year-end | 5,328,000 | 2,590,000 | 0 | ||||||
| Billings during the year | 2,160,000 | 2,650,000 | 5,190,000 | ||||||
| Cash collections during the year | 1,880,000 | 2,700,000 | 5,420,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Calculate the amount of revenue and gross profit (loss) to be
recognized in each of the three years. (Do not round
intermediate calculations. Loss amounts should be indicated with a
minus sign.)
|
In: Accounting
The following information applies to the questions displayed
below.]
In 2021, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2023. Information related to the contract is
as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
2021. 2022. 2023
Revenue
Gross profit(loss)
In: Accounting
Chapter 6, #5
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,542,000 | $ | 3,772,000 | $ | 2,074,600 | |||
| Estimated costs to complete as of year-end | 5,658,000 | 1,886,000 | 0 | ||||||
| Billings during the year | 2,020,000 | 4,294,000 | 3,686,000 | ||||||
| Cash collections during the year | 1,810,000 | 3,800,000 | 4,390,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
(Do not round intermediate calculations. Loss amounts
should be indicated with a minus sign.)
| 2021 | 2022 | 2023 | |
| Revenue | |||
| Gross profit(loss) |
In: Accounting
Multiple-Product Break-even, Break-Even Sales Revenue
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows:
| DVDs | Equipment Sets | |
| Price | $8 | $25 |
| Variable cost per unit | 4 | 15 |
Total fixed cost is $74,460.
Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $18 and a variable cost per unit of $12. Total fixed cost must be increased by $24,820 (making total fixed cost $99,280). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.
Part 1: Sales Mix Instructions and Part 2: Break-Even
1. What is the sales mix of DVDs, equipment
sets, and yoga mats?
3:1:2
2. Compute the break-even quantity of each product.
| Break-even DVDs | units |
| Break-even equipment sets | units |
| Break-even yoga mats | units |
Part 3a: Income Statement
3a. Prepare an income statement for Cherry Blossom Products for the coming year.
| Cherry Blossom Products Inc. | |
| Income Statement | |
| For the Coming Year | |
| $ | |
| $ | |
| $ | |
Feedback
3a. Prepare contribution margin income statement.
Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety
3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.)
| Overall contribution margin ratio | % | |
| Overall break-even sales revenue | $ |
4. Compute the margin of safety for the coming
year in sales dollars.
$
In: Accounting
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In: Accounting