Xoiswa Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below: 20182019Sales3,600,0004,200,000Purchase of premium, P50 per plate 390,000 580,000Number of plates distributed as premiums 5,000 9,000Estimated number of plates to be distributed in next period 2,000 3,000Distribution cost P20 per plate What is the premium expense for 2019?

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Answered: Xoiswa Company manufactures a product…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Xoiswa Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below:

	2018	2019
Sales	3,600,000	4,200,000
Purchase of premium, P50 per plate	390,000	580,000
Number of plates distributed as premiums	5,000	9,000
Estimated number of plates to be distributed in next period	2,000	3,000
Distribution cost P20 per plate

What is the premium expense for 2019?

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