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On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $4,200 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%.
What is the expected transaction price with variable consideration estimated as the expected value?
Multiple Choice
$4,830
$4,200
$5,830
$3,990
probability | Pay | ||
expected base price | 4200 | 4200 | |
finished 2 weeks early | 1260[4200*30%] | 30% | 378[1260*30%] |
finished a week early | 420[4200*10%] | 60% | 252[420*60%] |
expected transaction price with variable consideration | 4830$[4200+378+252] | ||
Required information [The following information applies to the questions displayed below.] On April 1st, Bob the...
Question 1 Part A and B A. Mary signed up and paid $1,440 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate: Multiple Choice $480 of revenue, $960 of accounts receivable $480 of revenue, $960 of deferred revenue $1,440 of revenue, $1,440 of cash $960 of revenue, $480 of accounts receivable B. [The following information applies to the questions displayed below.] On April 1st, Bob the Builder entered...
On April 1, Bob the Builder signed a month-long contract to build a barn for Nolan. Bob is guaranteed to receive a flat fee of $ 5,000 for his services, plus a bonus depending on when the project is completed. Nolan offered to pay an additional $ 1,500 of the flat fee if the project was completed 2 weeks early. The probability of finishing 2 weeks early is 40% What is the price of this contract for Bob under the...
Required information [The following information applies to the questions displayed below. The cash records and bank statement for the month of July for Glover Incorporated are shown below. GLOVER INCORPORATED Cash Account Records July 1, 2021, to July 31, 2021 Cash Balance July 31, 2021 $5,880 Cash Balance July 1, Cash 2021 Receipts $7,390 $8,630 Cash Receipta Date Desc. 7/9 Sales 7/21 Sales 7/31 Sales Amount $2,630 3,210 2,790 Cash - Disbursements $10,140 Cash Disbursements Date Check Desc. 7/7 531...
Required information (The following information applies to the questions displayed below] On April 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month April 1 Nozomi invested $34,000 cash and computer equipment worth $20,000 in the company in exchange for common stock 2 The company rented furnished office space by paying $2,900 cash for the first month's (April) rent. 3 The company purchased $1,600 of office supplies for cash. 10...
Required information The following information applies to the questions displayed below) of 2 During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 72,000 were in process in the production department at the beginning of April and 288,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion....
Required Information The following information applies to the questions displayed below.) Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Molding 75,000 DLR 98,000 MM Finishing 160,500 DLR 01,500 M Tarnish Industries uses departmental overhead rates and is planning on a $2 per direct labor hour overhead rate for...
Help Saw Required information The following information applies to the questions displayed below! During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 66,000 were in process in the production department at the beginning of April and 264,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion....
! Required information {The following information applies to the questions displayed below. The cash records and bank statement for the month of July for Glover Incorporated are shown below. SLOVER INCORPORATED Dash Account Records Culy 1, 2021, to July 31, 2021 Tah BC Cash BA July 1, 2021 $7,390 Jash + Receipte $3,690 July 31, 2021 $5,000 Date 7/9 7/21 7/31 Cash Receipts Dese. 3ales Sa.es Salaa Amount $2,630 3, 210 2,790 Cash - Disbursements $10,140 cesh Disbursements Date Check!...
! Required information [The following information applies to the questions displayed below.) Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 290,000 DLH 490,000 MH $ 490,000 Finishing 159,000 DLH 144,550 MH $779,100 Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based...
Required information [The following information applies to the questions displayed below.] Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Assembly Finishing Direct labor hours 189, eeeDLH 140,000 DLH Machine hours Зее, еве МН 60, eee MH $300,000 $420,000 Overhead costs Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based...