Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1, 2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December 31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak. (b) Your Answer Correct Answer Your answer is correct. Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by Novak. (Round answer to 2 decimal places, e.g. 52.75.) (c) Accrued rebate receivable $ eTextbook and Media Solution * Your answer is incorrect. Per unit cost Calculate the unit cost that Flounder should use in the costing of wood frames, using the perpetual inventory system. (Round answer to 4 decimal places, e.g. 52.1212.) $ eTextbook and Media Solution 390 2.79 Assistance Used Attempts: 3 of 3 used
Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1, 2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December 31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak. (b) Your Answer Correct Answer Your answer is correct. Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by Novak. (Round answer to 2 decimal places, e.g. 52.75.) (c) Accrued rebate receivable $ eTextbook and Media Solution * Your answer is incorrect. Per unit cost Calculate the unit cost that Flounder should use in the costing of wood frames, using the perpetual inventory system. (Round answer to 4 decimal places, e.g. 52.1212.) $ eTextbook and Media Solution 390 2.79 Assistance Used Attempts: 3 of 3 used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder
to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more
than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder
has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1,
2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December
31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak.
(b)
Your Answer Correct Answer
Your answer is correct.
Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by
Novak. (Round answer to 2 decimal places, e.g. 52.75.)
(c)
Accrued rebate receivable $
eTextbook and Media
Solution
* Your answer is incorrect.
Per unit cost
Calculate the unit cost that Flounder should use in the costing of wood frames, using the perpetual inventory system. (Round
answer to 4 decimal places, e.g. 52.1212.)
$
eTextbook and Media
Solution
390
2.79
Assistance Used
Attempts: 3 of 3 used
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