Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Question
Chapter 11, Problem 22E
To determine
Identify the true statement from the given options.
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Bosco company has two suppliers: Gillian and Miles. The cost of warranty work due to
defective components is $800,000. The total units repaired under warranty are 100,000
units, of which 90,000 have components from Gillian and 10,000 have components
from Miles. Which of the following statement/s is/are true?
i. Components purchased from Gillian cost $720,000 more than their purchased price.
iL. Components purchased from Miles cost $100,000 more than their purchased price.
i. Miles is the better supplier in regard to the quality delivered.
iv. Gillian is the better supplier in regard to the quality delivered.
Select one:
O a. i and iv
O b. i and ii
Oc. i and i
Od. i and i
O e i and iv
RG Construction has entered a contract to supply 500 identical items on sale or return basis to a customer for OMR 400 each. Each item costs
company OMR 200 to make. The term of sales provides three months to customer from the date of sale to return the items and get a full refund.
The reliable estimation shows that around 5% of such sold items are usually returned. What is the amount of refund liability to be recognised in the
statement of financial position?
O a. OMR 10,000.
O b. OMR 100,000.
OC. OMR 200,000.
O d. OMR 6,000.
Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes
an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. The
installation is considered a separate performance obligation and is expected to take 6 months to complete.
(a)
Your answer is correct.
Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List
all debit entries before credit entries.)
(b)
Date
Account Titles and Explanation
Jan. 2, 2025
Accounts Receivable
Sales Revenue
Unearned Service Revenue
(To record sales on account)
Jan. 2, 2025
Cost of Goods Sold
Inventory
(To record cost of goods sold)
eTextbook and Media
List of Accounts
Your answer is incorrect.
Debit
404500…
Chapter 11 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 11 - What does it mean to obtain a competitive...Ch. 11 - What is customer value? How is customer value...Ch. 11 - Prob. 3DQCh. 11 - What are organizational and operational...Ch. 11 - What is the difference between a structural cost...Ch. 11 - What is value-chain analysis? What role does it...Ch. 11 - Prob. 7DQCh. 11 - What are the three viewpoints of product life...Ch. 11 - What are the four stages of the marketing life...Ch. 11 - Prob. 10DQ
Ch. 11 - What are the four stages of the consumption life...Ch. 11 - Life-cycle cost reduction is best achieved during...Ch. 11 - Prob. 13DQCh. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Woodruff Company is currently producing a...Ch. 11 - Ventana Company is a car window repair and...Ch. 11 - Deeds Company sells custom-made machine parts to...Ch. 11 - Kagle design engineers are in the process of...Ch. 11 - Hepworth Company has implemented a JIT system and...Ch. 11 - Keith Golding has decided to purchase a personal...Ch. 11 - Prob. 7ECh. 11 - Classify the following cost drivers as structural,...Ch. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Assign the customer-related activity costs to each...Ch. 11 - The following series of statements or phrases are...Ch. 11 - Assume that a company has recently switched to JIT...Ch. 11 - Prob. 14ECh. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Potter Company has installed a JIT purchasing and...Ch. 11 - Prob. 18ECh. 11 - Which of the following is a true statement about...Ch. 11 - Prob. 20ECh. 11 - This year, Hassell Company will ship 4,000,000...Ch. 11 - Prob. 22ECh. 11 - The second stage of customer-based activity-based...Ch. 11 - Evans, Inc., has a unit-based costing system....Ch. 11 - Cortalo, Inc., manufactures riding lawn mowers....Ch. 11 - Moss Manufacturing produces several types of...Ch. 11 - Maxwell Company produces a variety of kitchen...Ch. 11 - Prob. 28PCh. 11 - Nico Parts, Inc., produces electronic products...Ch. 11 - Jolene Askew, manager of Feagan Company, has...Ch. 11 - Homer Manufacturing produces different models of...Ch. 11 - Mott Company recently implemented a JIT...Ch. 11 - Southward Company has implemented a JIT flexible...Ch. 11 - Prob. 34P
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- Crane Company sells goods on credit that cost $320,000 to Paul Company for $404,500 on January 2, 2025. The sales price includes an installation fee, which has a standalone selling price of $44,000. The standalone selling price of the goods is $360,500. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2025. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Jan. 2, 2025 Jan. 2, 2025 (To record sales on account) (To record cost of goods sold) Debit Creditarrow_forwardATZ Corporation produces a popular brand of vacuum cleaners that is backed by a five-year warranty. The following data is given: Sales revenue $500,000 Raw materials inspections 4,800 Scrap Returns resulting from defects 7,000 Employee quality training 1,200 Regular maintenance for factory equipment 8,500 Estimate of lost sales due to quality problems 10,000 Cost of goods sold 3,100 350,000 Determine the total quality costs for ATZ Corporation.? Calculate the prevention costs ratio in the corporate sales. ? with step please?arrow_forwardSarasota Company sells goods that cost $324,000 to Ricard Company for $442,800 on January 2, 2025. The sales price includes an installation fee, which has a stand-alone selling price of $43,200. The standalone selling price of the goods is $399,600. The installation is considered a separate performance obligation and is expected to take 6 months to complete (installation was completed on June 18, 2025). (a) How much revenue does Sarasota record on January 2, 2025? Revenue $arrow_forward
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