Business Administration - Accounting & Financial Planning ECN501 Chapter Notes - Chapter 2: 4Dos
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Sector | Portfolio Weighting | (2) S&P Weighting | (3) Differences in Weighting | (4) Portfolio Return | (5) S&P Return | (6) Sector Over- or Under Performance | (7) = (3) x (6) Sector AllocationContributions |
Telecommunications Services | 3.10% | 5.90% | A. (2.80%) | 2.50% | 3.10% | K. (-0.60%) | U. (-1.68%) |
Utilities | 7.50% | 3.80% | B. 3.70% | 3.10% | 1.90% | L. 1.20% | V. 4.44% |
Information Technology | 14.30% | 17.90% | C. (-3.60%) | 4.90% | 3.20% | M. 1.70% | W. (6.12%) |
Materials | 6.30% | 3.70% | D. 2.60% | 4.80% | 5.10% | N. (-0.50%) | X. (1.30%) |
Financials | 13.40% | 17.10% | E. (-3.70%) | 6.20% | 4.80% | O. 1.40% | Y. (5.18%) |
Consumer Discretionary | 12.70% | 13.50% | F. (-0.80%) | 2.10% | 4.00% | P. (-1.90%) | Z. 1.52% |
Industrials | 14.10% | 11.90% | G. 2.20% | 4.90% | 3.10% | Q. 1.80% | AA. 3.96% |
Energy | 8.40% | 8.00% | H. 0.40% | 3.70% | 8.60% | R. (-4.90%) | BB. (-1.96%) |
Healthcare | 15.30% | 11.70% | I. 3.60% | 9.80% | 5.70% | S. 4.10% | CC. 14.76% |
Consumer Staples | 4.90% | 6.50% | J. (-1.60%) | 1.50% | 13.20% | T. (-11.70%) | DD. 18.72% |
4. Which sector made the greatest negative contributionto the portfolioâs performance? Explain why this investment madethe greatest negative contribution based on the differences inweighting and the sector over- or under- performance.
Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:
(1) Determine Rock Slideâs cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;
(2) Determine Rock Slideâs gross profit (margin) using the inventory costing methods of
FIFO, LIFO and Weighted Averages;
S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide
| Assembly Activity | Units | Cost/Unit | Total Cost |
| Beginning Inventory 1/1/12 | 70 | $105 | $7,350 |
| Assembly Units Placed Into Inventory | |||
| 2/15/12 | 85 | $110 | $9,350 |
| 4/20/12 | 90 | $112 | $10,080 |
| 9/18/12 | 65 | $112 | $7,280 |
| 11/16/12 | 110 | $112 | $12,320 |
| 12/20/12 | 80 | $120 | $9,600 |
| Total Assembled Units Available for Sale- 2012 | 500 | $55,980 |
Schedule B
Sales of Power Units Rock Slide
| Sales Activity | Units | Unit Sales Price | Total Sales |
| 1/15/12 | 60 | $145 | $8,700 |
| 3/20/12 | 80 | $150 | $12,000 |
| 5/2/12 | 100 | $150 | $15,000 |
| 10/8/12 | 60 | $150 | $9,000 |
| 11/30/12 | 110 | $150 | $16,500 |
| 12/28/12 | 30 | $175 | $5,250 |
| Total 2012 Sales | 440 | $66,450 |
