Novozymes A/S, a Danish biotechnology company,reported inventory of 2,850 million DKK at the beginningof 2023, purchased raw materials worth 4,200 millionDKK during the year, incurred direct labor costs of 1,750million DKK and manufacturing overhead of 2,100 millionDKK, while the ending inventory was valued at 3,100million DKK. Calculate the Cost of Goods Sold (COGS)for Novozymes A/S for the year 2023, and explain thesignificance of this metric in evaluating the company'soperational efficiency. Unilever PLC reported totalaccounts receivable of €6,800,000 at the end of 2023,and the company wants to estimate its allowance fordoubtful accounts using the aging method. Theiraccounts receivable aging schedule shows: €4,000,000(current -1% uncollectible), €1,500,000 (1-30 days pastdue - 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 estimatedallowance for doubtful accounts that Unilever shouldrecord at year-end. Show your calculations for each agingcategory and determine the total allowance amount thatshould be reported on the balance sheet.

Problem 1 - Novozymes A/SBeginning inventory2,850Raw materials purchases4,200Direct…

Answered: Novozymes A/S, a Danish biotechnology…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 21E

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