ten empty packs returned to Brownie, customer will receive an attractive food container. The company estimates that only 30% of the packs reaching the market will be redeemed. Additional date are as follows: Units Amount Sales of food packs Food containers purchased 3,000,000 P9,000,000 60,000 180,000 Prizes distributed to customers 37,000 At the end of the year, Brownie recognized a liability equal to the estimated cost of potential prizes outstanding.

ten empty packs returned to Brownie, customer will receive an attractive food container. The company estimates that only 30% of the packs reaching the market will be redeemed. Additional date are as follows: Units Amount Sales of food packs Food containers purchased 3,000,000 P9,000,000 60,000 180,000 Prizes distributed to customers 37,000 At the end of the year, Brownie recognized a liability equal to the estimated cost of potential prizes outstanding.

Name: The Brownie Corporation launched a sales promotional campaign on June
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Description: The Brownie Corporation launched a sales promotional campaign on June 30, 2021. For everyten empty packs returned to Brownie, customer will receive an attractive food container. Thecompany estimates that only 30% of the packs reaching the market wil

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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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash…
JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow,…
The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6) yellow wrappersreturned one (1) ball pen is given as a price. It is estimated that only 40% of the yellow wrappers of all sales of Cold Candywith yellow wrappers will be returned for the exchange with ball pen prize. Starting July 1, 2019, all Cold Candy to be soldwill have blue wrappers.During the six (6) months period ending June 30, 2019:Sales of Cold Candy, yellow wrappers, 180,000 for P900,000. Ball pen given in exchange of returned wrappers, 4,000costing P16,000.If all the estimated number of yellow wrappers to be returned are returned and the corresponding ball pen prizes bepurchased and given to the customers returning the wrappers, how much is the amount of the purchase of the ball pen?Prepare all entries related to the above transactions affecting Cold Foods Corp.
A towel is offered as a premium to customers who send in 10box tops of facial soap returned and a remittance of ₱25. Distribution cost is ₱10 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided thefollowing information: 2020 2021Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000Number of box tops returned 22,500 38,550Requirements:4. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021
ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, what amount of unearned revenue from unredeemed premiums should ABC report on its December 31,2020 statement of financial position? P 72,664.36 P 1,575,000.00 P 75,000 P 1,453,287.20
ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups? A. P 1,453,287.20 B. P 47,474,048.44 C. P 300,000 D. P 1,753,287.20
ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups? 1,453,287.20 47,474,048.44 300,000 1,753,287.20
In an effort to increase sales, Alabama Company inaugurated a sales promotional campaign on June 30, 2022. The company placed a coupon redeemable for a plushy in each package of cereal sold. To receive a premium, a customer must present five (5) coupons. Each plushy cost the firm P20, while it can be sold by Alabama for P50 each. The company estimates that only 45% of the coupons issued will not be redeemed. For the six months ended December 31, 2022, the following information are available: Packages of cereal sold 170,000 Selling price per box of cereal P100 Plushies purchased 25,000 Coupons actually redeemed 80,000 (a) How much is the premium expense for the year ended December 31, 2022? (b) How much is the estimated liability for premium claims as of December 31, 2022? (c) How much is the inventory of premium items as of December 31, 2022?
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED: How much net cash did the entity receive (give) with regards to the premium transactions for the year 2019 and 2020?
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED: Compute for the premium liability for the year ended December 31, 2019 and 2020.
Topsy Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of ₱20. Distribution cost is ₱5 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2019 2020 Facial Soap sales, P45 per unit 2,400,000 php 2,785,000 php Towel purchases, P70 per unit 320,500 php 355,000 php Number of box tops returned 20,500 php 34,850 php REQUIRED:Compute for the premiums expense for the year ended December 31, 2019 and 2020.