ACCOUNTING:TOOLS... W/WILEYPLUS >C<
ACCOUNTING:TOOLS... W/WILEYPLUS >C<
6th Edition
ISBN: 9781119298243
Author: Kimmel
Publisher: WILEY C
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Chapter 13, Problem 9Q

a)

To determine

Explain the characteristics of a company

b)

To determine

Find the interest of few parties in same characteristics of a company

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Rainbow, Inc. uses a process costing system. The company has only one processing department. Ending work in process inventory consists of 20,000 units carrying a cost of $46,000. These units are 40% complete with respect to materials. The equivalent cost per unit for materials and conversion costs is $2 and $3, respectively. With regard to conversion costs, what percentage of completion is the ending inventory? A. 50% B. 40% C. 60% D. 100%
Fit & Slim (F&S) is a health club that offers members various gym services. Required: Assume F&S offers a deal whereby enrolling in a new membership for $950 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 20% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $980, and a one-year enrollment in yoga classes sells for an additional $500. F&S estimates that approximately 40% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price. c. Prepare the journal entry to recognize revenue for the sale of a new membership. Assume F&S offers a “Fit…
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