ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program?

ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as estimated liability for promotional items outstanding? a. ₱ 250,000 b. ₱ 300,000 c. ₱ 375,000 d. ₱ 450,000 At the close of the first year, how much should ALMOND recognize as expense for the promotional program? a. ₱ 300,000 b. ₱ 400,000 c. ₱ 150,000 d. ₱ 100,000
ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as estimated liability for promotional items outstanding?
ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. 1) At the close of the first year, how much should ALMOND recognize as estimated liability for promotional items outstanding? A. ₱ 300,000 B. ₱ 450,000 C. ₱ 250,000 D. ₱ 375,000 2) At the close of the first year, how much should ALMOND recognize as expense for the promotional program? A. ₱ 150,000B. ₱ 100,000C. ₱ 400,000D. ₱ 300,000
ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as estimated liability for promotional items outstanding? * A ₱ 250,000 B ₱ 375,000 C ₱ 450,000 D ₱ 300,000
SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for 10 bottle crowns plus ₱5. SPIDER MAN also pays ₱2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding?
9. ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping costs. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as an expense for the promotional program? a. ₱ 300,000 b. ₱ 400,000 c. ₱ 100,000 d. ₱ 150,000
9. ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program? * A ₱ 150,000 B ₱ 400,000 C ₱ 100,000 D ₱ 300,000
A confectioner , a chain of candy stores , purchases its candy in bulk from its suppliers For a recent shipment , the company paid P4,000 and received 10, 500 pieces of candy that are allocated among three groups. Group 1 consists of 2,500 pieces that are expected to sell for PO.40 each. Group 2 consists of 6,000 pieces that are expected to sell. For P0.60 each . Group 3 consists of 2,000 pieces that are expected to sell is the cost for P0.70 each . Using the relative sales value method , what is the cost per item in group 3?
Kristin Company sells 300 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Kristin decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kristin estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit. Indicate the amount of (a) net sales, (b) estimated liability for refunds, and (c) cost of goods sold that Kristen should report in its financial statements (assume that none of the products have been returned at the financial statement date).
Philacor, Inc. consigned twelve refrigerators to Ocampo’s Emporium. The refrigerators cost P6,000 each and the consignor paid P720 for freight-out. The consignee rendered an account sales for the five units sold at P7,700 each, and deducted the following items from the selling price: Commission (based on sales net of commission) 10% Marketing expense (based on commission) 10% Delivery and installation (on each unit sold) P30 How much was the net profit of the consignor on the five refrigerators sold? How much was the net remittance of the consignee on the five refrigerators sold?
On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box contains one coupon, which entitles the buyer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the buyer to receive a premium. Jhet Enterprises estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional info revealed that ₱10 per premium is incurred for storage and distribution. Required: Compute for the liability for the unredeemed coupons.
On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box contains one coupon, which entitles the buyer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the buyer to receive a premium. Jhet Enterprises estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional info revealed that ₱10 per premium is incurred for storage and distribution. Required: Compute for the premium expense for the year.