Entire production at the prevailing market price

Reference no: EM131041134

Hogan Farms produced 1,600,000 pounds of cotton during the 2015 season. Hogan sells all of its cotton to Ott Co., which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market price will not fall below $.70 per pound during the next two years. Hogan's costs of selling and distributing the cotton are immaterial and can be reasonably estimated. Hogan reports its inventory at expected exit value. During 2015, Hogan sold and delivered to Ott 1,200,000 pounds at the market price of $.70. Hogan sold the remaining 400,000 pounds during 2016 at the market price of $.72. What amount of revenue should Hogan recognize in 2015?

Reference no: EM131041134

Questions Cloud

Disappear in computer based purchasing systems : Why do the inventory control and general ledger departments seem to disappear in computer based purchasing systems? Describe whether these functions are no longer important enough to have their own departments

Determine whether each of the statements is true or false : When a molecule has two, degenerate, "infrared active", vibrational modes, the two vibrational modes will show absorptions at different frequencies in the infrared spectrum.

Privacy rights of the teachers violated : When a teacher discovered the cameras, he sued. In 600 words, were the privacy rights of the teachers violated? (Helisek v. Dearborn Public Schools, 2008 U.S. Dist. LEXIS 25514 [E.D. Mich.])

What is the development of privacy legislations in australia : What is the development of privacy legislations in Australia (or Hong Kong)? How successful are those legislations in protecting individuals' privacy? Use specific examples to explain.

Entire production at the prevailing market price : Hogan Farms produced 1,600,000 pounds of cotton during the 2015 season. Hogan sells all of its cotton to Ott Co., which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market pri..

Effective control systems : Successful control systems are effective in ensuring good performance within the organization. They have a lot of control within the organization and have a lot of emphasis on approach within the organization and a number of choices that the organ..

Three statements of key knowledge : Please share with the rest of the class at least three statements of key knowledge gained in this course and provide a concrete example of how you think the knowledge will assist you in your work career.

Compute budgeted indirect-cost rates : Give two reasons why most organisations use an annual period rather than a weekly or monthly period to compute budgeted indirect-cost rates?

Review typical workflow processes within health organization : Determine the main advantages and disadvantages of the adoption of The HITECH (the Health Information Technology for Economic and Clinical Health) Act for health care professionals. Next, suggest one (1) strategy that the medical staff members cou..

User Account

All Pages