cool sound corporation manufactures a line of amplifiers that carry a three year war 3368658

Cool Sound Corporation manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-3% of sales; and third year after sale-4% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales …………Warranty Expenditures 2012 ……. $ 810,000 ……………………… $ 6,500 2013 ……. 1,070,000 ……………………… 17,200 2014 …… 1,036,000 ………………………. 62,000 Instructions (a) Calculate the amount that Cool Sound Corporation should report as warranty expense on its 2014 income statement and as a warranty liability on its December 31, 2014 statement of financial position. Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. (b) Assume that Cool Sound s warranty expenditures in the first year after sale end up being 4% of sales, which is twice as much as was forecast. How would management account for this change?

cool sound ltd manufactures a line of amplifiers that carry a three year warranty ag 3368659

Cool Sound Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-3% of sales; and third year after sale-4% of sales. Sales and actual warranty expenditures for the first three years of business were: Instructions (a) Calculate the amount that Cool Sound Ltd. should report as warranty expense on its 2017 income statement and as a warranty liability on its December 31, 2017 statement of financial position using the assurance-type warranty (expense-based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. (b) Are assurance-type warranties recorded differently in IFRS and ASPE? (c) Assume that Cool Sound s warranty expenditures in the first year after sale end up being 4% of sales, which is twice as much as was forecast. How would management account for this change?

cool spring company produces premium bottled water in the second department the bott 3368660

Cool Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work in process inventory include transferred in costs of $1,700, direct labor of $700, and manufacturing overhead of $330. February data for the Bottling Department follow: ? Requirements 1. Compute the Bottling Department equivalent units for the month of February. Use the weighted-average method. 2. Compute the cost per equivalent unit for February. 3. Assign the costs to units completed and transferred out and to ending Work in process inventory. 4. Prepare the journal entry to record the cost of units completed and transferred out. 5. Post all transactions to the Work in process inventory—Bottling Department T-account. What is the endingbalance?

cool spring company produces premium bottled water in the second department the bott 3368661

Cool Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $ 1,700, direct labor of $ 700, and manufacturing overhead of $ 330. February data for the Bottling Department follow: ? Requirements 1. Prepare a production cost report for the Bottling Department for the month of February. 2. Prepare the journal entry to record the cost of units completed and transferred out. 3. Post all transactions to the Work-in-Process Inventory—Bottling T-account. What is the endingbalance?

cooper grant is the president of acme brush of brazil the wholly owned brazilian sub 3368664

Cooper Grant is the president of Acme Brush of Brazil the wholly owned Brazilian subsidiary of U.S.-based Acme Brush Inc. Cooper Grant’s compensation package consists of a combination of salary and bonus. His annual bonus is calculated as a predetermined percentage of the pretax annual income earned by Acme Brush of Brazil. A condensed income statement for Acme Brush of Brazil for the most recent year is as follows (amounts in thousands of Brazilian reals [BRL]): Sales BRL………10,000 Expenses ………9,500 Pretax income BRL …….500 After translating the Brazilian real income statement into U.S. dollars, the condensed income statement for Acme Brush of Brazil appears as follows (amounts in thousands of U.S. dollars [US$]): Sales . . . . . . . . . . . . . . . . . . . . . . . . US$3,000 Expenses . . . . . . . . . . . . . . . . . . . . . . .. .3, 300 Pretax income (loss) . . . . . . . . . . . . US$ (300) Required: a. Explain how Acme Brush of Brazil’s pretax income (in BRL) became a U.S. dollar pretax loss. b. Discuss whether Cooper Grant should be paid a bonus or not.