Novozymes A/S, a Danish biotechnology company, reported inventory of 2,850 million DKK at the beginning of 2023, purchased raw materials worth 4,200 million DKK during the year, incurred direct labor costs of 1,750 million DKK and manufacturing overhead of 2,100 million DKK, while the ending inventory was valued at 3,100 million DKK. Calculate the Cost of Goods Sold (COGS) for Novozymes A/S for the year 2023, and explain the significance of this metric in evaluating the company's operational efficiency. Unilever PLC reported total accounts receivable of €6,800,000 at the end of 2023, and the company wants to estimate its allowance for doubtful accounts using the aging method. Their accounts receivable aging schedule shows: €4,000,000 (current -1% uncollectible), €1,500,000 (1-30 days past due - 3% uncollectible), €800,000 (31-60 days past due - 5% uncollectible), €300,000 (61-90 days past due - 10% uncollectible), and €200,000 (over 90 days past due - 15% uncollectible). Calculate the total estimated allowance for doubtful accounts that Unilever should record at year-end. Show your calculations for each aging category and determine the total allowance amount that should be reported on the balance sheet.
Novozymes A/S, a Danish biotechnology company, reported inventory of 2,850 million DKK at the beginning of 2023, purchased raw materials worth 4,200 million DKK during the year, incurred direct labor costs of 1,750 million DKK and manufacturing overhead of 2,100 million DKK, while the ending inventory was valued at 3,100 million DKK. Calculate the Cost of Goods Sold (COGS) for Novozymes A/S for the year 2023, and explain the significance of this metric in evaluating the company's operational efficiency. Unilever PLC reported total accounts receivable of €6,800,000 at the end of 2023, and the company wants to estimate its allowance for doubtful accounts using the aging method. Their accounts receivable aging schedule shows: €4,000,000 (current -1% uncollectible), €1,500,000 (1-30 days past due - 3% uncollectible), €800,000 (31-60 days past due - 5% uncollectible), €300,000 (61-90 days past due - 10% uncollectible), and €200,000 (over 90 days past due - 15% uncollectible). Calculate the total estimated allowance for doubtful accounts that Unilever should record at year-end. Show your calculations for each aging category and determine the total allowance amount that should be reported on the balance sheet.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 30E
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Transcribed Image Text:Novozymes A/S, a Danish biotechnology company,
reported inventory of 2,850 million DKK at the beginning
of 2023, purchased raw materials worth 4,200 million
DKK during the year, incurred direct labor costs of 1,750
million DKK and manufacturing overhead of 2,100 million
DKK, while the ending inventory was valued at 3,100
million DKK. Calculate the Cost of Goods Sold (COGS)
for Novozymes A/S for the year 2023, and explain the
significance of this metric in evaluating the company's
operational efficiency. Unilever PLC reported total
accounts receivable of €6,800,000 at the end of 2023,
and the company wants to estimate its allowance for
doubtful accounts using the aging method. Their
accounts receivable aging schedule shows: €4,000,000
(current -1% uncollectible), €1,500,000 (1-30 days past
due - 3% uncollectible), €800,000 (31-60 days past due -
5% uncollectible), €300,000 (61-90 days past due - 10%
uncollectible), and €200,000 (over 90 days past due -
15% uncollectible). Calculate the total estimated
allowance for doubtful accounts that Unilever should
record at year-end. Show your calculations for each aging
category and determine the total allowance amount that
should be reported on the balance sheet.
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