Home Products Inc. (HPI) entered into a contract on June 30, Year 1, to buy 750,000 pounds of aluminum siding on September30, Year 1, at a price of $18.25 a pound. The company's troasurer simultaneously took a short position in a forward contact byagreeing to sell 750,000 pounds of aluminum at a price of $16 50 a pound on September 30, Year 1. Assume the followingprices for aluminum siding and the aluminum forward contract.June 30 Year 1 September 30 Year 1Aluminum siding / lb.$18.25$17 95$16.50$16.32Aluminum forward / IbBased on the above what is the earnings effect of the aluminum siding purchase commitment with the corresponding fair valuehedge at the September 30, Year 1 end?

In order to solve the problem, the corporation has agreed to purchase 750000 pounds of aluminum…

Answered: Home Products Inc. (HPI) entered into a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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19) Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $370,000. Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the expected-cost-plus-a-profit margin approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) Product X Y Z A) $159,390 B) $94,868 C) $123,333 D) $185,000 Standalone Price $150,000 $110,000 Not Available Market Price Forecasted Cost $130,000 $100,000 $160,000 $85,000 $100,000 $140,000
XYZ CO. delivered 150 portable gas stoves to DEF CO. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that XYZ CO. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others the following information: Advertising P6,750 Delivery expense P3,375 Commission P10,125 How much is the amount remitted by DEF to XYZ for the first month?
Bridgeport Company sells goods that cost $258,000 to record company for $352,600 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $34,400. The standalone selling price of the goods is $318,200. The installation is considered a separate performance application and is expected to take six months to complete (installation was completed on June 18, 2025). How much income should Bridgeport report related to its sale to Ricard in its income statement prepared for the quarter ended March 31, 2025? Gross profit:
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X Co. and Y Co. entered into a contract where the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four years duringthe last war and for two years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-yearperiod, Y Co. stopped the delivery of its sugarcane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver Sugarcane for six additional years on the ground that the fortuitous event had the effect of stopping the runningthe term or period agreed upon. Will the action prosper? Reasons
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Assume that 4,500 units of the halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 3,600 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the total cost concept. Twilight Lumina Company received an offer from Contech Inc. for 1,400 units of the halogen light at $202.50 each. Contech Inc. will market the units in Southeast Asia under its own brand name, and no selling and administrative expenses associated with the sale will be incurred by Twilight Lumina Company. The additional business is not expected to affect the domestic sales of the halogen light, and the additional units could be produced using existing capacity. a. Prepare a differential analysis report of the proposed sale to Contech Inc. $Revenue from sale of additional units Variable costs of additional units Differential income (loss) from accepting offer
On September 1, 20x1, ABC Co. enters into a contract with a customer to remodel a plant's electrical wirings and install a new generator for a total consideration of P10M. The remodeling and the installation single performance obligation treated as a satisfied over time. The expected contract costs Generator LO as follows: Other costs Expected total contract costs 2,500,000 4,000,000 6,500,000 VERSITY Additional information: • ABC Co. uses the cost-to-cost method in measuring its progress towards the complete satisfaction of the performance obligation. • ABC Co. incurs total costs of P4,000,000 in 20x1, including the cost of the generator. The customer obtains control of the generator when it is delivered to the site in December 20x1. However, the generator will not be installed until March 20x2. • • ABC Co. regards the cost of the generator as significant in relation to the expected total contract costs-eating during examinations, quizzes or plagiarism in connection . Although ABC Co.…
Crane Corporation uses the completed-contract method. At the end of the first year of a $9023000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2021000 O $991000 O $247750 O $275000 O $0 6011000 1811000 1536000 In the first year, Crane should recognize gross profit of Crane Corporation uses the co information is available: Costs to date: Estimated costs to complete Progress billings during the y Cash collected during the yea In the first voor Crano should r Snipping Tool Screenshot copied t Select here to mark
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Euro Aviation signed a purchase commitment for jet fuel in Year 1 for in the amount of $10,000,000. The fuel is to be delivered in Year 2. At December 31, Year 1 the market value of the contract is $11.200,000 due to an increase in jet fuel prices. It is expected the gain will be realized in Year 2 as jet fuel is delivered. 1. Describe how Euro Aviation may account for this contract at the end of Year 1 under IFRS (Is there more than one option and specifically what are they)? 2. Describe how Euro Aviation may account for this contract at the end of Year 1 under US GAAP?

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