Mention the accounting treatment for the customer who purchases $500,000 of product this quarter and expected that annual purchases to be $3,000,000. Based on the anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Question

Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Answer 1

Question

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data. Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold 2.50 3.00 6.50 6.00 Variable operating expenses 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…

Analyzing one company's make or buy and special order proposals OneCo is a retail organization in the Northeast that sells upscale clothing. Each year, store managers (in consultation with their supervisors) establish financial goals; a monthly reporting system captures actual performance. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Product costs Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission 0.90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: · Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. ·…

MYS App Ch 1 M Ques M X Chat Use ta gaut Soluta acco a webs a wear a acco calcuTelesa Requ /ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect ework i ces Saved [The following information applies to the questions displayed below.] The first production department in a process manufacturing system reports the following unit data. Beginning work in process inventory Units started and completed 35,200 units 52,800 units Units completed and transferred out Ending work in process inventory 88,000 units 17,900 units Help Save & Exercise 16-4 (Algo) Weighted average: Computing equivalent units LO P1 Prepare the production department's equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)-Weighted Average Method 1. All direct materials are added to products when…

Answer 2

Question

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

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Answer 3

Question

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

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Answer 4

Question

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

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Answer 5

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

Answer 6

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Answer 7

Chapter 12, Problem 29E

a.

To determine

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Answer 8

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

Answer 9

b.

To determine

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

Answer 10

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

Answer 11

c.

To determine

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

Answer 12

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

Answer 13

d.

To determine

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.

Answer 14

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Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

Mention the accounting treatment for the customer who purchases $500,000 of product this quarter and expected that annual purchases to be $3,000,000. Based on the anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Mention the accounting treatment for the customer who purchases $500,000 of product this quarter and expected that annual purchases to be $3,000,000. Based on the anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Mention the accounting treatment for the property tax bill amount of $30,000 relating to corporate headquarters in the beginning of the year.

Mention the accounting treatment for the cost incurring to develop advertising campaign expected to be aired in the next quarter that benefit the next and the following quarters.

Mention the accounting treatment for the sales people who will achieve the annual level of sales needed to realize a 3% bonus commission. During the quarter, they report $ 1 million in sales.

Chapter 12 Solutions

Mention the accounting treatment for the customer who purchases $500,000 of product

this quarter and expected that annual purchases to be $3,000,000. Based on the

anticipated annual purchases, the customer will be eligible for a 2% sales discount.

Mention the accounting treatment for the cost incurring to develop advertising campaign

expected to be aired in the next quarter that benefit the next and the following quarters.

Mention the accounting treatment for the sales people who will achieve the annual level

of sales needed to realize a 3% bonus commission. During the quarter, they report

$ 1 million in sales.