Case study, Cost Accounting

Assignment Help:
Ask q6) The Net Sales revenue reported is derived from the sale of products. Each year Findley records from cash sells, sells on account and completed purchase orders. During 2016 and 2017, approximately 12% of the revenue recorded was generated from purchase orders for which customers have not taken possession of the products. However, the products have been segregated from other products in the warehouse and are available for the customers to pick-up. The customers have various reasons for not taking possession of the products: 1) a lack of available space for inventory, 2) current inventory levels are high, but it is anticipated that the inventory will decrease in the coming months, and 3) the production schedule has been delayed, so the customer is not ready for the products, yet. The Controller of Findley has stated that only a small portion of the revenue is derived from customers that have not picked up their products, thus the financial statements accurately reflect Findley’s financial performance.
• Prepare a memo that either supports or refutes the Controller’s position.


Related Discussions:- Case study

Contract costing terminology, Contract Costing Terminology Principles ...

Contract Costing Terminology Principles of profit income recognition in contracts The Notional Profit This is a component of two items as: a) Profit taken   = Noti

Absorption costing and marginal costing, Absorption Costing and Marginal Co...

Absorption Costing and Marginal Costing Product costs are costs identified along with goods produced or purchased for resale. That costs are initially identified like part of

Difference between expenses and expenditure, The difference among expenses ...

The difference among expenses and expenditure. Expense is the outflow from a profit oriented organization whereas expenditure is the outflow from non-profit organization.

Market-based transfer price optimal, Under what conditions is a market-base...

Under what conditions is a market-based transfer price optimal?

Administration costs budget, Administration Costs Budget This represe...

Administration Costs Budget This represents the costs of all administration expenses. Every department or budget centre will be responsible for the preparation of its own bud

Labour Costs and Overhead Costs, Labour Costs and Overhead costs Labo...

Labour Costs and Overhead costs Labour Costs Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly

What is the overall purpose to the statement of cash flows, 1.    Provide...

1.    Provide at least three characteristics of a corporation (in your own words).   2.   The date on which a cash dividend becomes a binding legal obligation is known

What is amount that lifo liquidation added to gross margin, Q. Given the be...

Q. Given the below information, what is the dollar amount that the LIFO liquidation added to gross margin?   Number of Units Price per Unit

Cvp for multiple products, CVP for Multiple Products What number of bus...

CVP for Multiple Products What number of businesses sells only one manufactured goods? The reality is that firms usually give us the diverse product line, and the individual pr

EXPECTED CASH COLLECTIONS, WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PAT...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Write Your Message!

Captcha
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