Determine actual warranty costs

Assignment Help Financial Accounting
Reference no: EM133696

Question :

Ankiel Securities Division

Ankiel Securities Division works throughout manufacturers' agents in different cities to process orders for its alarm systems. Orders and down payments are forwarded from agents, and the company ships the goods straight to customers (usually police departments and security guard companies). The division bills the customers straight for the balance due plus actual shipping costs. The subsequent information is available for the fiscal year ended November 30, 20Y4:

a. The company received orders for $6,000,000 and down payments of $800,000 through the year. Goods of $5,400,000 were billed and shipped fob shipping. The down payments formerly received related to these shipped orders. The division identifies revenue at the point of sale.

b. The company's profit margin is 20 percent of cost.

c. Actual freight costs of $100,000 were billed to customers.

d. Commissions of 10 percent on product price are paid to manufacturing agents when goods are shipped to customers.

e. The alarm systems are warranted for 90 days after shipment, and warranty returns have been about 1 percent of sales. Actual warranty costs through the year totaled $35,000.

Revenue to be recognized in 20Y4: ______________________________

Reference no: EM133696

Questions Cloud

What is the forecasted addition to retained earnings : What is the forecasted addition to retained earnings for 2010? A budget is a formal written statement of management's strategies for the future expressed in financial terms. Evaluate the forecasted inventory balance have to be to achieve a Turn..
How to get a spreadsheet file from the get directory : How to  Get a spreadsheet file from the get directory
What is the amount of total income recognized : What is the amount of total income recognized in the 2014 income statement solely as a result of these bonds?
Dement publishing division : Dement Publishing Division and Revenue to be recognized
Determine actual warranty costs : Determine Actual warranty costs
Solve the mean and standard deviation equations : Solve the mean and standard deviation equations
Solve the equations using linear algebra : Solve the equations using linear algebra
Analyze weaknesses and financial strengths of the company : Analyzing the weaknesses and financial strengths of the company
Role of monitoring and evaluation in quality assurance : Explain the role of monitoring and evaluation in Quality Assurance Discuss Five tools that you can use to effectively monitor the activities of your school

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Check a governmental and a not-for-profit program

Check a governmental and a not-for-profit program

  Prepare a cash disbursement budget

Prepare a cash disbursement budget for March - May only.

  How did sprint report the debt in its balance sheet

How did Sprint report the debt in its balance sheet? Why?

  Financial accounting theory

prepare an essay which demonstrates their understanding about the issue

  How does disney describe cash and cash equivalents

How does Disney describe cash and cash equivalents

  Analyze the accounting needs for the business combination

Analyze the accounting needs for the business combination technique you selected. Prepare related financial statements for the date of acquisition.

  Evaluate the internal rate of return for each project

Evaluate the internal rate of return for each project

  Evaluate the companys break-even point

Evaluate the company's break-even point in number of widebody passenger jets and in dollars of sales.

  Financial statements of ascension health

Review the companies' balance sheets, statements of income/operations, and statements of cash flows. Identify and describe five similarities

  Evaluate the amount of depreciation expense

Evaluate the amount of depreciation expense that can be recognized under each of the subsequent depreciation methods in the first and second years of the truck's useful life.

  How many shares of ordinary stock are outstanding

How many shares of ordinary stock are outstanding at year-end?

  Evaluate the total unit cost of each product line

Evaluate the total unit cost of each product line in a refined state.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd