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Using the guidance from ASC 606, calculate the variable price for each of the following contracts with customers. Also, identify the method used and the rationale. Customer A: Customer B: Possibility Probability (%) Price (USD) Possibility Probability (%) Price (USD) A 50 26.50 A 55 26.50 B 20 24.00 B 45 24.00 C 20 25.25       D 10 28.00

Q. 8  Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue   Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do   (Q8,9,10 plz)

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Exercise 22.1 (Static) Accounting Terminology (LO22-1, LO22-4, LO22-6) The following are nine technical accounting terms: Responsibility margin Contribution margin Performance margin Transfer price Cost-plus transfer price Product costs Common fixed costs Traceable fixed costs Committed fixed costs Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. a. The costs deducted from contribution margin to determine responsibility margin. b. Cost to produce plus a predetermined markup. c. Fixed costs that are readily controllable by the manager. d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of e. various marketing strategies on the income of the…

Problem 2-32 Multiple choice (IFRS) 1. What is the accounting for the transaction price of a contract of sale with customer coupons for free product, discount or rebate? a. Entirely as product sales revenue b. Allocated to customer options equal to stand-alone selling and the balance to product sales c. Allocated between product sales revenue and based on stand-alone selling price d. Entirely as coupon revenue 2. What is the stand-alone selling price of free product coupons? a. Nothing b. Fair value less cost of disposal c. Selling price of free product d. Selling price of free product adjusted for expected redemption 3. What is the stand-alone selling price of discount coupons? a. Discount on customer purchases during the year b. Discount on customer future purchases c. Discount on customer purchases during the year adjusted by expected redemption d. Discount on customer future purchases adjusted by expected redemption 4. What is the stand-alone selling price of rebate coupons? a.…

1 To decide on an appropriate selling price for a special-order product” is an example of which cost allocation. Select one: a.To motivate managers and other employees b. To provide information for economic decisions c. To justify costs or compute reimbursement amounts   d. To measure income and assets for reports to external parties

QUESTION 36 A company compensates its sales manager in such a way that the sales manager honestly provides a sales target (forecast). The company’s compensation method is:      C   =     j T   +  k (A – T),  (if  A ≥ T)                j T   –  m (T – A),  (if  A < T)    where, C  =  compensation;  A = actual sales by sales manager;  T = sales target provided by sales manager   . In the above compensation method  the coefficient "j"   represents:     A. the advantage of exceeding the target.     B. the benefit of honestly setting  the target.   C. the penalty of not meeting the target.   D. the penalty of not setting the target honestly.

Problem 6 Listed below are several costs incurred by the loan department of J P Morgan and Chase Bank. For each cost, indicate which of the following classification best describe the cost. More than one classification may apply to the same cost item. Cost classification Controllable by the loan department Uncontrollable by the loan department Direct cost of the loan department Indirect cost of the loan department а. b. C. d. е. Differential cost Marginal cost g. Opportunity cost f. h. Sunk cost i. Out-of-pocket cost Cost items Salary of the loan department manager Salary of a loan department clerk Cost of office supplies used in the loan department Cost of the department's personal computer purchased by the department manager last year. Cost of general advertising by the bank, which is allocated to the loan department. Revenue that the loan department would have generated for the bank if a branch loan office had been located downtown instead of in the next province. Difference in the…

If a company sells a product, and gives the buyer the right to return the product within a specified period, revenue from the sales transaction should be recognized at the time of sale if:   Question 21 options:   there is a transfer of the risks and rewards of ownership.   the market for returnable goods is unknown.   the amount of future returns can be reasonably estimated.   the amount of goods returned is likely to be high. At the time of a contract signing,   Question 16 options:   no journal entry is recorded.   cash is recorded.   a contract liability is recorded.   a contract asset is recorded.

e Preview 4) F3 $ R 01- Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Price Cost of goods sold Gross profit F4 Customer service Project bidding Engineering support Total costs In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: S⁰5 Activity Number of service requests Number of bids Number of customer design changes Unit volume % Activity 3:0 F5 T Activity-base usage and unit volume information for the…

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C-2 if your recommendation in part (c-1) is followed, what would be the company's overall profit ?

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories. Sales revenue Costs of fitting produced Gross profit Administrative costs Operating profit Amount $ 1,170,000 900,000 $ 270,000 207,000 $ 63,000 Per Unit $26.00 20.00 $ 6.00 4.60 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of…

Problems 5.1-5.3 relate to Goods and Services Selection the life cycle, identify a reasonable operations strategy for each: ... 5.1 ing products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. Product Alpha has annual sales of 1,000 units and a contribution of $2,500; it is in the introductory stage. Prepare a product-by-value analysis for the follow- COMPANY CONTRIBUTION (%: TOTAL ANNUAL CONTRIBUTION PRODUCT CONTRIBUTION (% OF SELLING PRICE) DIVIDED BY TOTAL ANNUAL SALES) POSITION IN LIFE CYCLE Product Bravo has annual sales of 1,500 units and a contribu- PRODUCT tion of $3,0003; it is in the growth stage. Product Charlie has annual sales of 3,500 units and a contribution of $1,750; it is in the decline stage. Smart watch 30 40 Introduction Tablet 30 50 Growth Hand calculator • 5.2 Given the contribution made on each of the 50 10 Decline three products in the following table and their position in