Week 3 Intergrated Analysis One
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Week 3 Integrated Analysis One
Doria McDuell
The University of Texas Rio Grande Valley
ACCT 6301 Accounting for Managers
Dr. Akinloye Akindayomi
January 26, 2024
Question 1: C6-48 on page 317-318
10a
. Assume that Groupon sells an Invicta Chronograph Watch in its Product marketplace. The price of the watch is $80, and the watch cost Groupon $40. Using journal entries, illustrate how Groupon would record the sale of the watch.
Sale of Invicta Chronograph Watch
Account
Debit
Credit
Cash
$80
Cost of Goods sold
$80
Inventory
$40
Sales Revenue
$40
This entry assumes Groupon receives cash for the watch at the time of sale.
The cost of the watch to Groupon is $40, which is debited to Cost of Goods Sold and credited to Inventory.
The sale of the watch generates $80 in revenue, which is credited to Sales Revenue.
10b.
Assume that Groupon sells a restaurant voucher in its Local marketplace. The consumer
pays $80, and Groupon will pat the restaurant $40 after the consumer has redeemed the voucher at the restaurant. The consumer has 60 days to redeem the voucher. Using journal entries, illustrate how Groupon would record the sale of the voucher. Assume that the consumer will redeem the voucher with certainty.
Sale of Restaurant Voucher
Account
Debit
Credit
Cash $80
Accounts Receivables
$80
Deferred Revenue $80
Sales E-Revenue
$80
This entry assumes Groupon receives cash for the voucher at the time of sale. If the customer pays on credit, AR would be debited instead of Cash.
The full amount of the voucher ($80) is initially recorded as Deferred Revenue, as Groupon has not yet earned this revenue until the customer redeems the voucher at the restaurant.
The sale of the voucher generates $80 in potential revenue, which is credited to Sales Revenue.
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Revenue Cycle
DURAPLAST’s sales department consists of 17 full-time and part-time employees. They receive orders via traditional mail, e-mail, telephone, and the occasional walk-in. Because DURAPLAST is a wholesaler, the vast majority of its business is conducted on a credit basis. The process begins in the sales department, where the sales clerk enters the customer’s order into the centralized computer sales order system. The computer and file server are housed in DURAPLAST’s small data processing department. If the customer has done business with DURAPLAST in the past his or her data are already on file. If the customer is a first-time buyer, however, the clerk creates a new record in the customer file. The system then creates a record of the transaction in the open sales order file. When the order is entered, an electronic copy of it is sent to the customer’s e-mail address as confirmation.A…
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You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year.
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Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.)
$
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Laboratory Exercise No. 18
Filename: Lab_exer18
A mobile phone store wants you to create a simple application. The program will start by asking
the brand of the phone. The user will then enter 10 different prices of that phone for the past
months. From the prices entered, be able to count the number of price that is more than 100.
Determine also the average price of all the amount.
Sample output:
Enter price 1
120
Enter price 2 :
50
Enter price 3
75
Enter price 4 :
105
Enter price 5
35
Enter price 6 :
Enter price 7 :
Enter price 8 :
20
80
115
Enter price 9 :
50
Enter price 10 :
75
Number of prices that is more than 100
: 2
Average of all prices
: 72.5
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Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a
maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how
much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are
taxed at a rate of 27%, then how much will you have when you retire?
Round all answers to 2 decimal places.
Before taxes retirement amount $
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Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unit product
cost for this bracelet is $270.00 as shown below:
Direct materials
$ 145
Direct labor
87
Manufacturing overhead
38
Unit product cost
$ 270
The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price
of $366.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct
materials cost per bracelet by $12. Imperial Jewelers would also have to buy a special tool for $462 to apply the filigree to the
bracelets. The special tool would have no other use once the special order is completed.
To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and
unaffected…
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QUESTION 11
Janice is a new buyer in the appliances department. Janice needs to place an order today for toaster ovens, Given the following information, how many toaster
ovens should Janice order today?
• Current total stock on hand - 39
• Safety stock - 19
• Average Weekly Sales (AWS) - 18
• Orders are completed every 6 weeks
• Delivery of orders takes 2 weeks
141
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Lean Principles
Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days).
To make its bulb products, Bright Night requires 57,600 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as follows:
Central Glass Company: $28.00 per pound of glass. Delivery schedule: 57,600 (640 lbs. x 90 days) pounds at the beginning of July to last for 3 months.
Ithaca Glass Company: $28.15 per pound of glass. Delivery schedule: 640 pounds per working day (90 days in the quarter).
Bright Night accepted Central Glass Company’s bid because it was the low-cost bid.
Considering only inventory financing costs, what is the additional cost per pound…
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Problem 1.
2.
Odette Electronics has 90 operating plants in seven southwestern states. Sales for
last year were P100 million, and the statement of financial position at year-end is
similar in percentage of sales to that of previous years (and this will continue in the
future). All assets (including fixed assets) and current liabilities will vary directly with
sales.
Statement of Financial Position
(in P millions)
Assets
Liabilities and Equity
Cash.....
P2
Accounts payable....
P15
Accounts receivable...
20
Accrued wages....
2
Inventory....
23
Accrued taxes.
8
Current assets..
P45
Current liabilities.
P25
Fixed assets...
40
Notes payable...
10
Ordinary shares.
15
Retained earnings...
35
Total assets..
P85
Total liabilities and equity..
P85
Odette's has an after-tax…
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Brief Exercise 9-11 [LO 9-1
Doughton Bearings produces ball bearings for industrial equipment. In evaluating the financial data from the previous year, the
management accountant has determined that the company's selling price per unit is $35, while the variable cost per unit is $30. What
is the contribution margin per unit?
Book
Contribution margin per unit
per beaning
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1,830 ✔
b. Determine the erpolovee's net pay for the week Round your answer to two decimal places.
X
Incorrect
Calculate Payroll
An employee earns $30 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 54 hours during the week.
Assume that the social security tax rate is 6.0%, the Medicare tax rate is 1.5%, and the employee's federal income tax withheld is $295.
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Problem Solving
USE THE DATA OF XYZ COMPANY FOR THE
The following are the ledgers of XYZ Company for the year ended December 31, 2017.
Net Sales
1,890,540.00
Cash
60,100.00
Cost of Goods Sold
1,058,540.00
Short-term Investments
74,000.00
Operating Expenses
Interest Expense
Income Tax Expense
506,000.00
Accounts Receivable
107,800.00
25,000.00
Merchandise Inventory
133,000.00
Machineries, net
Accounts Payable
Income Taxes Payable
86,000.00
615,300.00
160,000.00
43,500.00
210,000.00
Long-term Notes Payable
Owner's Equity
576,700.00
What is the company's gross profit margin?
Choose
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Carla Vista Technologies is a telecom component manufacturer. The firm typically has a collection period of 33 days and days' sales
in inventory of 28 days. What is the operating cycle for Carla Vista?
Carla Vista's operating cycle is
days.
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E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its
customers. Information on those activities for the month of July follows:
Estimated
Expected Use of
Cost Drivers
Cost Pools
Cost Drivers
Overhead Cost
Order taking costs
Number of orders
$20,592
187,200 orders
Technology support
Number of minutes
$11,700
234,000 minutes
Picking and shipping
Number of DVDS
$39,624
330,200 DVDS
costs
During July, the Tucker family placed 17 orders consisting of 21 DVDS. Tucker required 7 minutes of tech support. Customers pay $9.00 per
month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for technology support?
O Some other answer
O $1.87
O $0.05
o$0.35
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Week 3 Overview - MGT6017_X70_Operations Management
JUL
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Problems
1. A manufacturing company has the following financial information (in millions of $):
Sales
Cost of goods sold
Direct labor
Purchased materials
Overhead
All other costs
Pretax earnings
Administrative costs.
Pretax earnings
$823
85
Criteria
310
tv
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a. What is the profit leverage effect of purchasing in this company?
b. What is the increase in earnings from an 8 percent savings in purchasing?
2. A service company has the following financial information (in millions of $)
Sales
Cost of outsourced facilitating goods
Cost of in-house services provided
250
84
$510
210
199
77
prod.reader-ui.prod.mheducation.com
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a. What is the profit leverage effect of reducing the cost of the facilitating goods in this company?
b. It has been suggested that the in-house services costs could be reduced by 10 percent in the coming year by implementing lean
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Question 17
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Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The
company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days
per year.
O 117.62 days
O 28.04 days
O 106.90 days
O 78.19 days
O 89.58 days
Question 18
Which statement is true?
O A decrease in the accounts receivable turnover rate decreases the cash cycle.
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Product
Desktop computer
Tablet computer
Landline telephone
4-in-1 desktop printer
Price per Unit
$400
60
60
100
Date Transactions
2018 California Business Solution purchases 10 electronic hardware packages at a cost of S620 cach by paying
April 1
April 7 CBS purchases 30 desktop computers on credit at a cost of S400 cach. The credit terms are n/15 with an
cash
invoice date of April 7.
April CBS makes full payment on the amount due from the April 7 purchase
17
May 1 CBS purchases 67 tablet computers at a cost of S60 cach on credit. The payment terms are S/10, n/30,
and the invoice is dated May 1.
May 10 CBS pays their account in fll.
June 1 CBS purchased 300 landline telephones with cash at a cost of $60 cach. On June 3, CBS discovers that
25 of the phones are the wrong color and returns the phones to the manufacturer for a full refund.
June 8 CBS discovers that 60 more phones from the June I purchase are slightly damaged, CBS decides to keep
the phones but reccives a…
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You are a new junior accountant at Cleariens Corporation, maker of lenses for eyeglasses. Your company sells generic-quality lenses for a moderate price. Your boss, the controller, has given you the latest month's report
for the lens trade association. This report includes information related to operations for your firm and your closest competitor for September 2020. The report also includes information related to the industry benchmark for
lens manufacturers for each line item in the report. You are Firm A and your closest competitor is Firm B.
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Calculate the total variable cost per unit for each firm. Compute the percent of total for the material, labor, and variable overhead components. (Round all cost amounts to the nearest cent. Round the
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iii.
What is his gross pay for a period in which work 12 hours of overtime and he is paid overtime at time and a half of
What is a salesperson's commission on net sales of $17800 if the commission is paid on a
sliding scale of 7%% on the first $7000, 8%% on the next $8000 and 12.5% on sales over $15000?
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Q5: Solve the following 3 problems related to GST, HST, PST,
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