Prompt:

Role play as a CEO of a firm that has come up with a new, more efficient way to compress and stream videos and audio (music) without sacrificing quality, but using lower bandwidth and less computing resources than the current state-of-the-art technology. How would you use FRAND (Reading b.) to protect your invention (which is primarily software. Hint: though not assigned, some help may be found in Reading b., Ch. 3.

Document Formatting  and Submission:

1-2 page essay (This is a short length, so please craft carefully your writing).

Suggestion: Have a friend review your English writing and content and fix issues BEFORE you submit)

Double spaced

1″ margins all around

12 point font

Use citations (in-text) and references (bibliography).

7.  

Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)

Make sure you include the profit with and without price discrimination  in your answer.

8.  

Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.

Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.

The cost to Time Warner is $1 per customer for licensing fees.

Preferences

Showtime

History Chanel

Customer 1

9

2

Customer 2

3

8

Should Time Warner bundle or sell separately?  Your answer needs to include the unbundled and bundled profits.

9.  Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both separately and as a bundle? 

Your answer must include the profit with mixed bundling.

P7-14  _ El Gato Painting Company

Adjust the problem with the figure / replace the below amount with this item:  Balance per bank 7847 & Balance per books 8418

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2011, reconciliation of the bank balance is as follows:

Balance per bank, November 30                                                                                               $3,231

Add: Deposits outstanding                                                                                          1,200

Less: Checks outstanding

                #363                                                                                      $123

                #365                                                                                      201

                #380                                                                                      56

                #381                                                                                      86

                #382                                                                                      340                           (806)

Adjusted balance per bank, November                                                                 $3,625

The company’s general ledger checking account showed the following for December:

                Balance, December 1                                                        $3,625

                Receipts                                                                                 42,650

                Disbursements                                                                 (41,853)

                Balance, December 31                                                   $ 4,422

The December  bank statement contained the following information:

                Balance, December 1                                                     $ 3,231

                Deposits                                                                              43,000

                Checks processed                                                            (41,918)

                Service charges                                                                       (22)

                NSF checks                                                                              (440)

                Balance, December 31                                                       $3,851

The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discovered that check # 411 for $320 was correctly recorded by the bank but was incorrectly recorded on the books as a $230 disbursement for advertising expense. Included in the bank’s deposit is a $1,300 deposit incorrectly credited to the company’s account.  The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been re-deposited and the company will seek payment from the customers involved.

Review the information pertaining to El Gato Painting Company and prepare the following:

1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2011.
2. Prepare any necessary adjusting journal entries indicated.

 1. Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are: 
A. Sunk labor.
B. Direct labor.
C. Indirect labor.
D. Finished labor.
E. Supervisory labor.

  2. Flexibility of practice when applied to managerial accounting means that: 
A. The information must be presented in electronic format so that it is easily changed.
B. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
C. The managerial accountants need to be on call twenty-four hours a day.
D. The design of a company’s managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
E. Managers must be flexible with information provided in varying forms and using inconsistent measures.

3. Which of the following items is a management concept that was not created to improve companies’ performances? 
A. Just-in-time manufacturing.
B. Customer orientation.
C. Total quality management.
D. Continuous improvement.
E. Theory of Constraints.

 4. Which of the following items appears only in a manufacturing company’s financial statements? 
A. Cost of goods sold.
B. Cost of goods manufactured.
C. Goods available for sale.
D. Gross profit.
E. Net income.

  5. Which of the following items does not represent a difference between financial and managerial accounting? 
A. Users of the information.
B. Flexibility of practices.
C. Timeliness and time dimension of the information reported.
D. Nature of the information.
E. Purpose of accounting.

 6. Dell Builders manufactures each house to customer specifications. It most likely would use: 
A. Capital process costing.
B. A periodic inventory system.
C. Unique costing.
D. Job order costing.
E. Activity-based costing.

7. Concept Company’s manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company’s manufacturing costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. The overhead application rate was: 
A. 5.0%
B. 12.0%
C. 20.0%
D. 500.0%
E. 16.7%

8. A job cost sheet shows information about each of the following items except: 
A. The direct labor costs assigned to the job.
B. The name of the customer.
C. The costs incurred by the marketing department in selling the job.
D. The overhead costs assigned to the job.
E. The direct materials costs assigned to the job.

9. The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units? 
A. $3,750
B. $2,000
C. $4,000
D. $6,000
E. $9,000

10. Job order costing systems normally use: 
A. Periodic inventory systems.
B. Perpetual inventory systems.
C. Real inventory systems.
D. General inventory systems.
E. All of the above.

11. Over applied or under applied overhead should be removed from the Factory Overhead account at the end of each accounting period. 
True    False

 12. If actual overhead incurred during a period exceeds applied overhead, the difference will be a credit balance in the Factory Overhead account at the end of the period. 
True    False