Funzy report as the promotional expense

Assignment Help Accounting Basics
Reference no: EM13122170

Funzy Cereal includes on coupon in each package of wheatos that it sells and offers a toy car in exchange for $1.00 and 3 coupons. The crs cost Funzy $1.50 each. Experience indicates that 40% of the coupons eventually will be redeemed. During the last month of 2011, the first month of the offer, Funzy sold 12 million boxes of wheatos and 2.4 million of the coupons were redeemed. What amount should Funzy report as a promotional expense for coupons on its December 31, 2011, income statement?

a. $800,000

b. $0

c. $400,000

d. $1,200,000

Reference no: EM13122170

Questions Cloud

Find chance other coin in the drawer selected is also gold : A cabinet has 3 identical drawers. One drawer contains 2 gold coins, another drawer has a gold coin and a silver coin, and the third drawer has 2 silver coins. (a) What is the chance you get a gold coin?
Reflection paper-over the book gifted hands the ben carson : reflection paper write a three page paper over the book Gifted Hands the Ben Carson story by Ben Carson and Cecil Murphy and also  include some quotes from the book as well.
Explain the five legal theories you could use in an attempt : Classify and explain the five legal theories you could use in an attempt to have the regulation declared invalid and overturned in court.
Finding area between graphs of two functions : Find the area between the graphs of the functions y1 (x) = x ln x and y2 (x) = -4 exp(3ln x) in the interval between the points x1 = 1 and x2 = e.
Funzy report as the promotional expense : During the last month of 2011, the first month of the offer, Funzy sold 12 million boxes of wheatos and 2.4 million of the coupons were redeemed. What amount should Funzy report as a promotional expense for coupons on its December 31, 2011, income..
Illustrate what value-chain matchups exist : Illustrate what value-chain matchups exist? Illustrate what opportunities for skills transfer, cost sharing or brand sharing are evident? Prior to its divestiture, illustrate what kind of strategic fits existed among adidas' core business and its ..
Explain the conditions necessary for a hurricane : Explain the conditions necessary for a hurricane to form and the locations where they are most common. Describe their typical patterns of movement.
Derive the aggregate demand curve : Derive the Aggregate Demand (AD) curve graphically, the experiment is to change Y in i-Y space and see what happens to P.
How many milliliters of .45m hydrochloric acid must be added : how many milliliters of .45M hydrochloric acid must be added to 25.0 mL of 1.00 M potassium hydroxide to make a neutral solution?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining transaction fee of underwriting

Sherman Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 7% on this transaction.

  Payroll journal entry

Maggie Moo's Ice Cream Shop had a gross pay of $19,000 and a net pay of $13,200 for the latest payroll. The journal entry to pay the payroll would be:

  Determine activity-based costing and traditional costing

How would you describe activity based costing? Also, can you explain why it might result in more accurate product costing information than the product cost derived under the traditional costing approach?

  Determining statistical safety stock

If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

  Cost of common equity of percy motors

Percy Motors has a target capital structure of 40 percent debt and 60 percent common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9 percent, and its tax rate is 40 percent.

  Explain how shaving 5% off the estimated direct labor hours

Explain how shaving 5% off the estimated direct labor hours in the base of the predetermined overhead rate usually results in a big boost in the net operating income at the end of the year.

  Problem related to molding department

The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 ..

  What is the impact on not eliminating intercompany payables

What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation? Is there an instance where either of these two practices wo..

  Prepare journal entries of sigfried company

Sigfried Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable. Prepare the journal entry to record the proceeds of the note.

  Question on business continuity

Imagine you are the Director of Internal Audit and executive management has asked you to work with the Chief Information Officer to evaluate the security over Information Technology.

  Stock dividend-derivative financial accounting

Derivative accounting: What are the disclosure requirements for traditional and derivative financial instruments? Should companies disclose if such instruments are used for hedging or speculation? Why?

  Collectability of outstanding loan

Oatly is concerned about the collectability of outstanding loan and whether the trucks still exist. He thus engages Susan Virms, CPA, to count the trucks, using registration information held by Oatly.

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