The statement that stock prices follow a random walk implies that: Select one: a. Successive price changes are independent of ea
1 answer:
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Answer:
How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price?
$0.
Since no service/good is delivered to the customer at the time of subscription. The fee receipt would be considered as a liability and would only be recognized as revenue at the end when the service is performed.
How many performance obligations exist in this contract?
2, Delivering newspapers is one performance obligation. The coupon for a 40% discount on a carriage ride qualifies as a second performance obligation.
Prepare the journal entry to recognize sale of 14 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.
Value of the coupon: 40% discount x $100 carriage fee = $ 40
Estimated redemption x 30%
Stand-alone selling price of coupon $12
Stand-alone selling price of a normal subscription $ 108
Total of stand-alone prices $ 120
Manhattan Today must identify each performance obligation’s share of the sum of the stand-alone selling prices of all deliverables:
Coupon: = 10%
Subscription: =90%
Manhattan Today allocates the total selling price based on stand-alone selling prices, as follows:
$110
(0.90)(110) + (0.10)(110) = 99 + 11
Subscription: $ 99
Coupon: $ 11
Upon receiving the fee for 10 subscriptions, the journal entry should be:
Cash ($110 x 14) 1,540
Deferred revenue – subscription ($99 x 14) 1,386
Deferred revenue – coupon ($11 x 14) 154
Answer:
Actual Price = $5.75 per pound
Explanation:
Provided Actual Usage = 58,000 pounds
Standard = 4 pounds per finished goods,
Provided finished goods = 15,000 units
Standard Raw Material = 15,000 4 pounds = 60,000 pounds
Provided Direct Material Efficiency Variance is Favorable
= (Standard Usage - Actual Usage) Standard Price
= (60,000 - 58,000)Standard Price = $10,500
=2,000 SP = $10,500
Standard Price = $10,500/2,000 = $5.25
Direct Material Price Variance = (Actual Price - Budgeted Price) Actual Quantity
We will calculate Actual Price using the above data,
(Actual Price (AP) - $5.25) 58,000 = $29,000 Unfavorable
As This variance is unfavorable, which means Actual Price is higher than Budgeted Price
AP - $5.25 = $29,000/58,000 = $0.5
Actual Price = $0.5 + $5.25 = $5.75 per pound