Reference no: EM132712849

Question - Need help with a few of these questions please.

Question 1: Evans Company had the following transactions in the month of March involving purchases and sales of inventory:

March 1: Beginning Inventory 65 Units @ $60/unit

March 5: Purchase of 210 Units @ $64/unit

March 9: Sale of 200 Units @ $90/unit

March 18: Purchase of 65 Units @ $65/unit

March 25: Purchase of 95 Units @ $70/unit

March 29: Sale of 75 Units @ $100/unit

Required: A) Calculate the cost of goods sold under the FIFO, LIFO, and Weighted Average methods.

B) Calculate cost of goods sold using the Specific Identification method. Assume the March 9 sale consisted of 40 units form beginning inventory and 160 units from the March 5 purchase. Assume the March 29 sale consisted of 20 units from the March 18 purchase and 55 units from the March 25 purchase.

C) Compute the gross profit earned under each of the four inventory valuation methods.

Question 2: If a business is not able to use the specific identification method for valuation of inventory, which alternate method do you think is the most fair?

Question 3: Ethical Issue: Although they don't actually pay people to act as fans on social networks and entice their friends to do so as well, some marketers employ machines, called bots, to inflate the number of their fans and followers online. In third world countries, businesses trafficking in fake profiles, the so-called click farms, are selling 1,000 followers for $10. Social networks try to respond by deleting fake accounts, and the likes earned in the process vanish too. Google has introduced an algorithm to eliminate spammers and other abusers of its systems, and Facebook and Twitter will probably follow suit. Why do some businesses resort to such measures? What might be the consequences of faking fans? How do you feel about companies and their brands pretending that they have actual traffic on their sites?

Question 4: AN IDEA FOR THE DOGS!

Chris Wasserberg is a salesperson for a Fortune 100 firm. He has a bachelor's degree in marketing and is one of the firm's best salespeople. Chris will likely become a sales manager if he stays with the firm. However, this is doubtful, because he hopes to start his own business.

Since he was hired seven years ago, Chris has managed to build a nest egg of $160,000. He now is looking for a business that would require no more than $60,000 to $70,000 to get started. The rest would be used for operating capital and to keep him going until the company turns profitable. In the past, Chris has gathered ideas by reading magazines such as Entrepreneur and Inc., which report on new types of businesses.

Last week, Chris read a story that intrigued him. A man on the West Coast has been building custom doghouses out of expensive materials and selling them for $5,000 to $15,000 each. Chris realizes few people can afford to pay this much for a doghouse. Yet most doghouses are not distinctive, and owners simply pay $50 to $150 for basic doghouses. Chris believes a market may exist for doghouses between these two extremes, in the range of $250 to $500. Chris has done the research and believes it would not be too difficult to differentiate his product from the standard doghouse. In particular, he is considering building a house that is slightly larger than the typical one, well insulated, and floored with washable vinyl; he would put the dog's name above the door and shingle the roof. Additionally, he believes that if the house has the same basic design as the owner's, it would be more appealing. The two biggest obstacles will be marketing and production-that is, getting people to order houses for their dogs and then building the houses. Chris believes that, with his background, he can handle the marketing, and it should not be too difficult to find someone to handle the construction. Moreover, until the business takes off, he believes he can continue with his sales job.

A) Is anything unique about Chris's idea? Explain.

B) What is the first thing he should do to follow up on his idea? Explain.

C) When this is done, what else should Chris do? Outline a general course of action of him.

Question 5: Based on something that would be interesting to someone as a potential business start-up, chose the best method of the 3 listed below and explain in detail why that method would be the best alternative.

Creating New Ventures

Every prospective entrepreneur wants to know the best method for getting a new business started.

A) New-New Approach to Creating New Ventures

B) New-Old Approach to Creating New Ventures

C) A Newness Framework for New Ventures

Question 6: Based on General Motors, give some examples of differentiation in that organization. In other words, what specialized tasks have to be performed, and how is labor divided at General Motors? Also, how does General Motors integrate the work of these different units? What would you say General Motors has an effective structure? Why or why not?